Trend plotting - Channels vs. Fan trendlines

Hello everyone,

I am going through some struggle here as far as detecting and plotting the trend on my charts, specially when it comes to decide between channels vs. Fan trendlines.

In my experience, the main bonus of each is:

- Channels: great for price targetting as you have both a trendline of the valleys and also of the peaks. As it envelopes the price, I usualy spot out better when the current retracement or swing is done for.

- Fan trendlines: I find them very accurate from the support-turned-resistance point of view. When a fan TL is broken as support, it doesn't take long till it serves as resistance

What's your input guys, which one do you prefer: channels or fan trendlines?


Cheers!

PS: here below, as example, the current 4H USDJPY chart with a channel and a fan trendline plotted on it.

So why don't you use what you are confortable with most, either it be a channel or a fan

Do you take better trading decisions when you use channels or when you use fans??? The odds favor the one which gives you better trading decisions of course without the need of any confusion.

Thanks,

Nader

I prefer to use channels. But like Narafa says, trade with what your most comfortable with. If you're comfortable with both, Iso has good point on overlaying both on your chart.

That actually sounds like a good idea to me. If you draw a channel, it's difficult to know whether a TL break of the upper channel will continue or will drop back into the channel. You could use the fan for extra confirmation of a breakout.

For example, on your chart near the end, see how price broke through the upper channel for the second time. Instead of taking a long trade on the channel's upper TL break, if you had your fans, you could wait for a break of the fan TL also.