Channel/Tramline Trading Confirmation

[fastjimmy]

Hello All

I am rapidly becoming a fan of drawing channels/tramelines and trading when the lines get touched/close too.....however, by using this method you are quite often trading against the trend or going against the direction indicated by most of the popular technical indicators.

May I ask what methods of confirmation are available to confidently enter a trade once my upper or lower channel lines/tramline has been touched?

Many thanks, James

 

[trende]

Hello All

I am rapidly becoming a fan of drawing channels/tramelines and trading when the lines get touched/close too.....however, by using this method you are quite often trading against the trend or going against the direction indicated by most of the popular technical indicators.

May I ask what methods of confirmation are available to confidently enter a trade once my upper or lower channel lines/tramline has been touched?

Many thanks, James

For confirmation Volume play a vital role. You can incorporate volume study which is must for any pattern confirmation and any other technical indicator/oscillator of you choice like RSI, Stochastic etc , in which you have expertise.

For example in a descending channel: there is decrease in volume with the formation of descending channel and there is an increase in volume activity near breakout. With this if the RSI is oversold condition or if the price is near a major support chances of breakout is high.

Details you will get in the stock screener and the tutorial available at:
Free EOD Screening of chart Pattern like Double top, Channel, triangle...