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Here’s How to Validate and Trade a Channel
Think of a trading channel as a horizontal trading range being turned at an angle. Where the range is trading between relatively defined levels of support and resistance over time, the angular channel is either making higher highs (ascending channel) or lower lows (descending channel) as price action moves on the chart. On the charts below are examples of both ascending and descending trading channels… By looking at both of these channels, one can readily see the similarities between a channel and a range that was mentioned earlier. Just as in range trading, the lower channel line is considered support and the ... (full story)