Forex Channel Trading Strategy

Forex Channel Trading Strategy, Price channels in Forex trading, the Forex market, trading or what is called Forex trading includes a large number of strategies that through following it will be able to achieve a large amount of profits.

Among these strategies there is a trading strategy based on price channels.

Other than that we find a large number of strategies that through their use will definitely fail your trading.

So that you can know all aspects of the price channels they will be discussed in detail.


The concept of price channels by trading Forex
  1. The channel is the area between the resistance line and the support line.
  2. The price channels are also one of the classic tools of technical analysis, as it includes a number of technical analyzes.
  3. We add to this that this method is the easiest way to trade, as it clarifies both the point of sale and purchase as well.

However, before discussing the details regarding the price channels, the concept of trading will be clarified at the beginning.

Forex trading concept
Trading is the exchange of one thing for another and its aim is to make a profit from the buying and selling teams and this is what is applied in the currency market.

Where we find in the currency market, a foreign currency is sold in exchange for buying another currency, which is called (currency pair).

The goal is to take profit from the difference between both the buying and selling process.

Types of price channels with Forex trading
  • The price channels are divided into several types. For example, there is a downward channel and an upward channel, as well as volatility.
  • The characteristics of each of these channels will be explained separately.

The bullish channel
  1. This channel indicates a rise in price, and if the channel is broken, it will be in two directions, one upward and the other down.
  2. The upside indicates that the upward movement continues and the other one is in the lower direction, and it indicates that the rise has turned lower.
  3. Two lines are drawn, or as it is called Trenden, and they are two lines, one touching two or more bottoms and the other paralleling it and touching the peaks.
  4. As for the selling movement, it is taking place on the high side of the price channel.

The bearish channel with Forex trading
  • It indicates a decline in price and a break situation in two directions, the first up and indicating the rise.
  • The other is when the break condition is down and it indicates the continuation of the idea of ​​falling in price.

The selling movement in the case of a descending price channel is at the highest level for that channel.

Two lines are also drawn in the descending channel, the first line is a line that touches the tops of the channel and the other parallel and touches the bottoms.

Volatility in the Forex Market
  1. Volatility is the third condition in which the price channel is in which it is not advised to trade in that period.
  2. Where we find that the price is unstable, it is high at a time and low at the next.
  3. You are in that state you are unable to put an analysis of the stock movement in that case and your trading ends in that period with a loss.

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