Channels

Channels have a bit of a connection to trend lines because channels are based on trend lines. In channels, we’re placing a specific structure with a different definition, allowing us to gain more confidence regarding our trading:

When we will have a specific strategy, meaning when you’ll decide to dive deeper and learn a particular strategy that will suit your needs, then […] will form a backup for your plan:

The idea of channels is that the upper and lower lines will have the same angle:

If the market crosses the trend line and breaks it, meaning closing beyond the trend line, it won’t coexist with our analysis of the indicators. And by that, it won’t give us an additional confirmation for my assessment, for our expectation, on the contrary, bouncing on top of this line:

At any given point, we’ve got traders that believe that a downtrend is the better probability and an uptrend is a better probability. So at any given point, we’ve got traders waiting aside to receive the signal cross beyond a trend line movement of a specific indie between lines of indicators and so on for them to take action:

When we’re expecting the market, on the one hand, to stay between these areas, that territory, and on the other, breaking a channel line, we’re expecting the market to not move forward beyond that specific structure:

The Fibonacci scale is significant when it comes down to building a character. Because in order for us to imply the idea of the Fibonacci scale in a successful way, we need to have experience: