Channel/Tramline Trading Confirmation

This is a discussion on Channel/Tramline Trading Confirmation within the Technical Analysis forums, part of the Methods category; Hello All I am rapidly becoming a fan of drawing channels/tramelines and trading when the lines get touched/close too.....however, by ...

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Old Jan 13, 2012, 7:48pm   #1
 
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Joined Aug 2011
Channel/Tramline Trading Confirmation

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
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Old Jan 20, 2012, 2:49pm   #2
Joined Dec 2011
Re: Channel/Tramline Trading Confirmation

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Originally Posted by fastjimmy View Post
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...
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