Working Money Trading Channels by Chaitali Mohile
A wise trader will continuously analyze new trading strategies in different market situations. The year 2008 began on a depressing note and the global economy entered a recessionary period as the market corrections hit lower lows in 2008. It was a challenging time for traders. By the time the nature of the market correction was recognized, many market participants had lost 50% of their gains and were on the verge of withdrawing altogether from the trading business. This is why it is essential to identify a correct trading strategy so you donít find yourself in such a situation.
WHAT TIME FRAME IS BEST?
In volatile markets, you cannot rely on one particular technical aspect. You need to thoroughly test a combination of technical tools. Channel trading could be one of the good strategies during the uncertainty in the financial markets. But if this strategy were combined with candlestick patterns, reliable momentum indicators, breakouts, and so on, you could make handsome profits. Channels can move upward, downward, or horizontally (flat), so the first step is to identify the type of channel being formed. To do this, three pivots that usually appear in early trading hours must be marked.