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What is Ascending & Descending Channel

Channel as name shows its range between two lines (Support/Resistance), It can be further divided into Two Parts Descending Channel & Ascending Channel ( Refer Images)

Descending Channel

chart pattern

Ascending Channel

chart pattern

Key Features of Pattern :-

Trend # Overall Trend should be clear ( either Bullish or Bearish)

Entry # Either after the breach of upper Line (for Long Trade) or after the breach of down Line (for short Trade)

Stop Loss # Swing Low for Short Trade and Swing high for Long Trade,

Target # Risk Reward should be 1:2 (or more), Range of Channel can also be used for Exit plan

Volume # Breakout or Breakdown should happen with huge volume

 

 

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