On this topic, I thought to present you a simple idea, that that involves only few tools: trend lines, and specifically how the trend lines can be used in a very practical manner, namely:
Price channels
Chapter I
Concomitant integration of both time and space in drawing the channels
This subject, as ordinarily it would look, apparently, is not very addressed by many traders and aspiring traders, at least not the version that I would present below, in this chapter and in the following ones. Most of the people who are drawing their own channels, they are doing on the periods when the charts are very convincing development - which is wrong in essence, like in the example bellow:
Maybe, on the first look, you would say: It's a genuine channel! but, unfortunately it isn't. Drawing channels, considering only the space dimension is the not perfect way to do it and it makes perfect sense. Price, as you know it, it is not something which is formed only in space, is formed in both time and space. About the time dimension, almost nobody is considering that it would be better to use it, so you are not a special snowflake, trust me.
If, on the chart, on the metatrader (I will use it in my examples because is used my many people) you activate the "Show periods separator" from the Properties section (right click on any chart or F8 from keyboard) you will nicely see how the chart is divided in few time zones and you will see that the chart has not been framed in time, at least not entirely.
The price should be framed very well in time and space or else we cannot talk about channels.
to be continued with chapter no.2 and chapter no.3.
Price channels
Chapter I
Concomitant integration of both time and space in drawing the channels
This subject, as ordinarily it would look, apparently, is not very addressed by many traders and aspiring traders, at least not the version that I would present below, in this chapter and in the following ones. Most of the people who are drawing their own channels, they are doing on the periods when the charts are very convincing development - which is wrong in essence, like in the example bellow:
Maybe, on the first look, you would say: It's a genuine channel! but, unfortunately it isn't. Drawing channels, considering only the space dimension is the not perfect way to do it and it makes perfect sense. Price, as you know it, it is not something which is formed only in space, is formed in both time and space. About the time dimension, almost nobody is considering that it would be better to use it, so you are not a special snowflake, trust me.
If, on the chart, on the metatrader (I will use it in my examples because is used my many people) you activate the "Show periods separator" from the Properties section (right click on any chart or F8 from keyboard) you will nicely see how the chart is divided in few time zones and you will see that the chart has not been framed in time, at least not entirely.
The price should be framed very well in time and space or else we cannot talk about channels.
to be continued with chapter no.2 and chapter no.3.