![]() When looking to draw trend channels the first thing to do is define the trend line. This starts with mastering how to draw trend lines and trend channels correctly. Mastering the subtleties of trend line and trend channel interpretation will come with experience and screen time.įor now its important to understand the simple methods to build an understanding around. A trend line and trend channel can tell us whether the trend is likely to continue equally any weakness in the trend suggests that we could expect a reversal. Remember we are not always looking for confirmation of the trend but also looking for indications of strength or weakness in the market trend. Provides insights into the strength or weakness of a trend.Act as Dynamic support and resistance levels and. ![]() The following is a method that I use based on classical technical analysis techniques.įirst lets recap on the 2 principles functions of trend lines. There are many differing opinions about how to correctly draw trend lines and trend channels. This is known as a price range and represent price consolidation. Trend line and channel line – How to draw trend lines and trend channels correctlyĬhannels can also be constructed horizontally.
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