Understanding When to Trade the Channel and When Not to!!
Welcome to this week's Stock-Market-Strategy.com Market Update. Just to recap, we have been watching the scenarios that we pointed out in last week's market update. We mentioned that the SP-500 was coming up to a resistance level on the daily chart and then the two things that could happen.:
- Either a phase 3 followed by a phase 4.
- Consolidation followed by continuation of the current uptrend.
Channel Trading Video
Due to the current lack of trend on the daily chart, we have dropped down to a 60 min chart to be able to get a decent risk to reward on our trades.
Instead of just guessing and going short at resistance, which I am sure many traders have done only to be in a losing position, we waited to see what the market would do at this crucial area of resistance. Here at Stock Market Strategy we have said many times before that we react on actions instead of predicting. We saw the market consolidate before breaking the resistance and based on this evidence we entered some long positions on 60 min charts. These are shorter term trades normally ranging from 1-3 days.
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Welcome to this week's Stock-Market-Strategy.com Market Update. Just to recap, we have been watching the scenarios that we pointed out in last week's market update. We mentioned that the SP-500 was coming up to a resistance level on the daily chart and then the two things that could happen.:
- Either a phase 3 followed by a phase 4.
- Consolidation followed by continuation of the current uptrend.
Due to the current lack of trend on the daily chart, we have dropped down to a 60 min chart to be able to get a decent risk to reward on our trades.
Instead of just guessing and going short at resistance, which I am sure many traders have done only to be in a losing position, we waited to see what the market would do at this crucial area of resistance. Here at Stock Market Strategy we have said many times before that we react on actions instead of predicting. We saw the market consolidate before breaking the resistance and based on this evidence we entered some long positions on 60 min charts. These are shorter term trades normally ranging from 1-3 days.Welcome to this week's Stock-Market-Strategy.com Market Update. Just to recap, we have been watching the scenarios that we pointed out in last week's market update. We mentioned that the SP-500 was coming up to a resistance level on the daily chart and then the two things that could happen.:
- Either a phase 3 followed by a phase 4.
- Consolidation followed by continuation of the current uptrend.
Due to the current lack of trend on the daily chart, we have dropped down to a 60 min chart to be able to get a decent risk to reward on our trades.
Instead of just guessing and going short at resistance, which I am sure many traders have done only to be in a losing position, we waited to see what the market would do at this crucial area of resistance. Here at Stock Market Strategy we have said many times before that we react on actions instead of predicting. We saw the market consolidate before breaking the resistance and based on this evidence we entered some long positions on 60 min charts. These are shorter term trades normally ranging from 1-3 days.