Here is an attachment for YM this AM.
Two channels occurred in the AM as shown on 3 min chart. 5 min is better to use.
Channels are classic as they begiin with one pace (take off) and revert to slower pace (cruising). Point 3a is the initial point; Point 3b is the cruising point.
What widens channels os not the left side of the channel. It is the right side.
The first five trades were in the 95 point short opening channel. The first three were short (7, 4, 12) and the next two were long (8, 2). The duration of the trades compared to the 1 hour long trend (95 points) was brief. To max the channel and use it for shorter trades (3) you nail an additional 20 points for 115 points.
The channel stalled telling you to expect a dip to reverse on for the second (within the channel) trade. MACD verified this with four consecutive signals. You reverse at new point 3 using MACD set of signals again. Stall in the down leg tells you that a dip will follow and it is verified on the MACD again same way. On stalls the fast and slow MACD lines are parallel.
Break out of first channel using point 3b. Happens and at that time you are long already.
your entry you now note as point 1, you find that the BO is point 2. You look for first point 3. You get it. And you look for new point 3. A stall occurs and you expect a dip. The dip comes and is followed by handle and you have new point 3 (3b).
This is difficult for beeginners. They would choose the dip as point 3b. If they did and were confident they would sideline at the BO through their right line. Beginners usually enter on first point 3. Using the indicators of this journal beginners have no other choice. Four set ups are the basis of this journal. They are veryt price oriented and even then formations are not key nor are channels.
Both point 3b's are the same value. a person who reasons can see this as a new support level. When you do, then you can renter long and this becomes a new point 1.
Experts would trade the second channel by reversing onpoint 2, reversing on the dipand slalom trade to the spike. the spike is a 1 min deal using a "change strategy". up to 3b the second channel yields about 70 points. Add that to the 115 and you are running 190 going into the base of the 60 plus point spike.
