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….
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