Saturday, August 25, 2012

Nifty: The power of “Channels” in technical analysis….

Nifty: The power of “Channels” in technical analysis….
Channeling is one of the most basic technical analysis concepts. Generally, a parallel line to a trendline is drawn to form a channel. A Channel is bound by upper and lower trendlines that usually acts as supports and resistances. From trading perspective even when using advanced concepts like Elliott wave applying this basic technique becomes extremely crucial.
Channels to a novice trader is overwhelming but when one gains the experience and starts learning advanced concept of technical analysis, channeling seems mundane.  However this one simple technique if applied properly is sufficient enough from trading perspective.
Below is the chart of Nifty showing the how accurately and beautifully prices have been taking support and resistances on the channel.
From trading perspective, identify the direction of the channel................... to read more click on this link: NIFTY: THE POWER OF “CHANNELS” IN TECHNICAL ANALYSIS….
or go to, Trading and Education section 

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