Strategies6 min read
Channel Trading Strategy: Riding Parallel Lines
Channels are trendlines drawn in parallel. Learn how to trade the bounce and the breakout. Trade the boundaries and the breakout when the channel finally.
Trading the Channel
In an ascending channel: buy at the lower trendline, sell at the upper. Stop below the channel. Target the upper line.
Channel Breakout
When price breaks the channel, it signals a trend change. Enter on the breakout candle close. Stop on the other side of the channel.
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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.