How to learn channel - Channel is one of the tools to conduct an analysis of the
development trend line. How to draw is also very simple, you just
"duplicate" trend line that you have created. Steps like this,
first drawing a trend line in accordance with the direction of the trend
line.Berikut as an example, suppose you draw the trend line during the up
trend.
Then, draw a line parallel to the trend line. The second
line is "projected" so as
to connect the dots peak, as the trend line, the line must be at least
connecting the two peaks. Be an Up
Channel or can be referred to as Ascending
Channel.
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| Up Channel |
Then to draw a Down
Channel, or referred to as Descending
Channel. All the same is simple to draw a bullish channel. The first step,
first drawing a trend line that connects at least two peaks, then create a line
parallel to the trend line that connects at least two valleys. Here is an
example of an image of Down Channel.
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| Down Channel |
Although quite simple, this channel is very useful. The
channel will be utilized to estimate the area Buy or Sell. The second line of
the Channel serves as resistance and support. A line that is above it, serves as resistance, then a line under that
serves as a support. For easier again in the call, we call it the second
line as a line of resistance and support lines.
At the moment the price is at the support line area, then
you can to try to find a confirmation in the form of a bullish signal to do so
Buy, with a target at the resistance line. Alert if the price to break below
the support line, if it happen, it's good to consider closing or removing such
transactions. and also got to see the development of the situation in the
market. In the case of this will be discussed later in the topic further, still
follow this educational module.
Likewise, when prices are in the area resistance line. At
that moment you can try to look for bearish confirmation signal in doing a sell
with a target at the support line. Of course you also need to be vigilant if
penetrated the resistance line after you do sell.
Sideways Channel
There are times when the price is moving Sideways, so you
can not image the Channel Up or Channel Down. if such circumstances, we can
image the horizontal Channel, or we call
Sideways Channel or Ranging Channel.
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| Sideways Channel |
Below is an example of a graph that presents three types
of Channel which we discussed above, namely: Channel Down, Channel Up and Channel Sideways.
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| Channel |
