This is the second education series on Channel (link of Education 01 given below),
In this educational post, I cover up points that validate a Channel and benefits of drawing a right channel.
Validation points are as follows:
Point 1: Two Parallel lines
Point 2: Higher High and Higher Lows in Uptrend and Vice-versa.
Point 3: Two compulsory touch points in order to draw correction trendline.
Three Touches are ideal also called "Three Touch Rule" (Will discuss further in next educational series)
What's Next:
1. How to identify trend with channels? 2. What is the right way to draw channels? 3. How to use Channels to find trades? ---------------> NEXT 4. How to validate channel trades and manage risk? 5. Multi-time frame examples
Purpose: To educate retail traders like us to make inform decisions and to become profitable in long run.
I WOULD APPRECIATE IF YOU COULD SHARE YOUR CHANNEL DRAWINGS IN COMMENT BELOW SO THAT I WOULD BE SURE THAT YOU FOLLOW WHAT IS BEEN POSTED AND WILL SET ME UP TO PROVIDE GREATER DETAILS IN NEXT ONE"
Hi Neetesh Sir
Can we ignore the candle wicks while drawing channel trendlines .
Also i have drawn a descending channel in Sunpharma daily chart ,is it correct
Thanks and regards
atul
[[File:Sunpharma.png]]