how to trade channel pattern trade
Don't confuse guys
In channel pattern two possibilities are at high -
1. either price consolidate and breakout
2. or price take resistance from top & fall
we can trade both but
1st case-
RR ratio 1:2& 1:3( anything more will have less probability
2nd case-
RR ratio is more than 1st like 1:3,1:5 easily
if we trade 2nd case then
SL will be just below the channel & target 1st will mid of channel & 2nd will be top of channel
In channel pattern two possibilities are at high -
1. either price consolidate and breakout
2. or price take resistance from top & fall
we can trade both but
1st case-
RR ratio 1:2& 1:3( anything more will have less probability
2nd case-
RR ratio is more than 1st like 1:3,1:5 easily
if we trade 2nd case then
SL will be just below the channel & target 1st will mid of channel & 2nd will be top of channel
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