Trading Channels And Trend Lines

Trading Channels And Trend Lines


hello traders its a samurai trader here
welcome to this well hopefully it’s going to be a short training video on a
couple of ideas and strategies that I’ve had students ask me to cover via video
which we’ll get done now I have been inundated with questions and as we lead
up to Christmas it’s Tuesday / 22nd of the 12th downunder so I’ll try to get
back to everybody and I’ve and their emails and I’ll try to put a few more
things on video but I’m really under wonder the pump as they say trying to
get a whole lot of things done before Christmas rolls around and I go away
with the family so here’s risk disclaimer of course I’m
thinking a hundred things at once here traders understanding the risk you feel
new to my videos please feel free to put a whole on the video and read the wrist
slight disclaimer also please go to full screen we will be looking live at the
chance down on the bottom right hand corner here and you can go fullscreen
now what I cover the strategies that I talked about are covered
comprehensively in the day traders fast-track program that is I covered 12
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you’ll ever need to investing so let’s have a look at the chance now what we’re
looking at traders here is the ES 1000 volumes the ES 1000 volumes
now the black lines we can see here or what we call pivots now what I am going
to do just for the sake of this video I’m going to turn them off because I
want you to be really focused on a couple of things I want to show you here um
now what I’m about to show you is using trend lines and channels and just how
predictive and how many professionals use them after you start to draw the
yourself manually you will become really good at it and it’s literally amazing
you’ll see price turnaround on these time and time again now trend lines and
channels become a lot more reliable during the main market hours for an
example we’re looking at the after hour at the moment this is up to 5 am. the
channels and this is a 1000 as I mentioned I’m not as reliable as once
you start to get towards the main hours so let’s have a look up here what we can
see at the top of the screen hopefully you can just see this is we’ve got a
high high and now we’ve got a lower high so what I’m going to do here is I draw a
trendline between the two so I got a high and a low and I’m going to actually
project that trend line to the right and I’m also going to then do a parallel
line and let me drag this down and just put it there
okay now let’s need to scroll along and see what’s happened with prices now look
at that there to their price remember we could only see there has come down hit
the lower channel gone up bounced up and then gone through you see this sort of
behavior happen day in day out now let’s just do this again now let me just move
something here and let’s have a look now remember I can’t see the risk of a
screen so let’s just go point to point there and let’s just extend right now
remember it’s not always going to be absolutely perfect and let me do a
parallel line and distract that down try to contain price and let’s see what
happens here look at that there yes we punched through but look how price come
up hit there come down hit the bottom of a channel are you starting to see the
power of this so you can see here all I could see was this bit of action so in
other words this becomes support this becomes resistance now what I don’t want
you to do is to lose sight of the using your EMA’s that
is for my students and pro traders you know
the 34 is our main trend that direction so be very very careful you don’t get
lost with too many lines here but after a while you’ll become very very good at
this now time waste down the bottom you can’t really see this this is 8:47 am.
Chicago time so let’s just move along here a little and we’ll go up a bit
longer all right now another thing I’d like you to keep an eye on traders is
this notice so we’ve got here at t1 but when you get these lower highs these or
a higher low they’re very often 8 out of 10 times a turning point so when you see
that start to get excited they’re by the way if you just don’t let’s what
happened if we went right there let me just do a whoops sorry I’ll just do a
parallel line let me just drag it back to where a reaction I got there ok so
pretty much contains it as you can see here all right now so what I’m using
here is is my t1 signals here now once again I but can’t even remember what
we’ve got and let me just do this here let’s just do a parallel line here and
let’s just go up to for the sake I’m just gonna take this point here and what
happens when we do that okay we’re basically pretty much contains price
nothing gets you excited about on that one but let’s just go along here a
little let me extend okay so we’ve got a lower low look at that as a turning
point by the way fantastic turning point this one here let’s just go to the right
okay so it’s now extended to the right or do a parallel line oops just do that
one there drag it down to that point there and what happens now look at that
there see that there all I had was that point to that point I extended it to the
right do a parallel line and look what happened
that hit it and look at the bounces off these lines that hit it you come down
and that hit it we’re punching through slightly and finally we had the market
change direction so what have I got here so here we’ve got three three points and
as you can see there we could have gone on to let’s extend this to the right
let’s do a parallel line and I’m going to take it up to the high of this one
okay because if you’re using this one and that one you’re not going to see
that okay but you can see what’s happened it’s gone up there and what
happens when I scrolled over right okay we went up there we pretty much
contained there okay and what happens when we go to the right here okay so go
to the right parallel line pull that down and let’s just go let’s assume here
we could only see this here at this stage okay we can only see that and what
happens when we scroll there look how price is contained pretty much within
that channel oops and this is some action further along in the day you can
see the channel so traders I just wanted to make this a short video now in times
of when you’re waiting for a trade um this can be fun to draw these in and
after a period of time you become very very good however let me explain the
risk the risk is that you become and let me just put this hold and so on remove
all this line the risk is that you lose sight of all of the other information
but as you can see price contain within the channels is incredibly valuable
so remember follow the eight follow you 34b 89 and the 200 where are the ideal
setups well when you see your 8 above the 34
for above your 89 and the 89 above you 200 you’ve got what a trend here this
is when you start to come into congestion now remember traders when you
see your 34 rollover and it’s heading towards the 89 be prepared for bounces
and as you know we trade these this is 89 bounce
that’s an 89 bounce this is an 89 bounce and finally you’ll find you’ll break
through well he had another 89 and it wasn’t till over here that you actually
broke through he had a nice t20 and your first pullback so traders I hope that
was helpful so drawing in parallel lines very quickly once again you only need to
really do two or three of three low points there we then extend it to the
right most charting packages will allow you to do that do your parallel line
there and then just go there approximately scroll across and look out
contains price okay why is this because so many traders work on areas of support
and resistance Thank You traders I hope this was helpful and I’ll see you on the
next video if you haven’t already subscribed to my channel please do

One Comments

  • I Am A Day Trader

    October 22, 2018

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