As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 |
As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
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Swing and Day Trading
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When price trends upward or downward and fits between two parallel trendlines, the chart pattern is called a channel. See rectangle tops or rectangle bottoms for horizontal channels.
|
Up and Down Channels
|
| Characteristic | Discussion |
| Price trend | The price trend leading to the channel can be from any direction. |
| Shape | A pipe tilted up or down, but not horizontal. See rectangle tops or rectangle bottoms for horizontal channels. |
| Trendlines | The two trendlines should be parallel or nearly so. Both should tilt upward or both should tilt downward. |
| Touches | Price should touch each trendline at least twice as distinct peaks or valleys. |
| Crossing | Price should cross the pattern from trendline to trendline, nearly filling the available space. |
| Breakout | Occurs when price closes outside the trendline boundary and can be in any direction. |
I haven't studied channels for performance (statistics). My feeling is that they are a lot like rectangles. Just after you enter the perfect trade, price moves in a different direction and you take a loss.
Consult the associated figure on the right.
| Trading Tactic | Explanation |
Up Channel
Down Channel
|
| Up sloping channels | Trade up channels from the long side. Buy when price rebounds at the bottom trendline (point A) and hope the breakout is upward (this works for tall channels). If price turns at the top trendline (B), then sell. Avoid going short in an up-sloping channel. If price pierces the channel, such as it does in the figure, then sell a long position or consider going short then. For position traders, ride the channel up from the bottom and sell if the breakout is downward from the channel (see the Buy and Sell notations in the figure. | |
| Down sloping channels | Trade down channels from the short side. Short when price turns down at the top trendline (point A) and be ready to cover as price nears the bottom trendline (B). Avoid going long when price is inside a down-sloping channel. For position traders, short at the top of the channel (Sell in the figure), and cover when price breaks out upward from the channel (Buy). | |
| Partial rise | If you can determine that a partial rise has formed, then trade it. Expect the breakout to be downward. The link to the left provides more information. | |
| Partial decline | If you can determine that a partial decline has formed, then trade it. Expect the breakout to be upward. The link to the left provides more information. | |
| Stops | If price closes outside the channel in the adverse direction, then close out the trade and consider trading in the direction of the new trend. |
The above figure shows an example of an upward price channel. Price makes a strong up move in December, and then forms a channel at a shallower angle than the prior ascent. That momentum loss is a warning. When price closes below the bottom of the channel, that is the sell signal. Price drops rapidly before beginning a slow recovery.
-- Thomas Bulkowski
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Very funny Scotty. Now beam down my clothes.
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