What's a Channel in Trading Indices?
A channel can be defined as a trading range for indices within which the stock indices price moves within in what is known as a indices trend.
The channel can be an upward indices channel or a downward indices channel.
Traders use indices channels to analyze stock indices price movements and determine what trade to take depending on the signal generated by the technical analysis of the indices channel.
What is Channel in Stock Indices Trading?
An upwards indices channel is plotted by plotting a line that is parallel to the upward trend line & then adjusted to touch the top boundary of the stock indices price movement. This then forms a channel & as long as the stock indices price stays between these 2 channels the bullish market indices trend movement will continue heading upwards - bullish indices trend.
What is Channel in Indices Trading? - What is Channel in Trading Indices? - MT4 Indices Channel Indicator
Trading the Upward Indices Channel - What is Channel in Stock Indices Trading?
Analysis of Upwards Channel - This channel in indices trading is used by stock indices traders to show levels where it best to take profits. Traders will take some profit once the stock indices price touches the upper channel and wait for another retracement before opening a buy indices trading again.
What is Channel in Indices Trading?
A downward indices channel is plotted by plotting a line that is parallel to the downwards indices trendline & then adjusting it to touch the bottom boundary of the stock indices price movement. This then forms a indices channel and as long as the stock indices price stays between these 2 channels the general market indices trend direction is intact the stock indices trading market direction will continue being bearish - bearish indices trend.
What is Channel in Indices Trading? - What is Channel in Trading Indices? - MT4 Indices Channel Indicator
Trading the Downward Stock Indices Channel - What is Channel in Indices Trading?
Analysis of Downwards Channel - The downwards indices channel in indices trading is used by stock indices traders to show levels where it best to take profits. Traders will take some profit once the stock indices price touches the lower channel or the lower channel and wait for another retracement before opening a sell indices trading again.
