The Technical Formation called a Channel consists of a section of price bars
that are between parallel support and resistance lines. There are three types of
channels: the Narrow Sideways Channel, the Inclining Channel, and the Declining
Channel.
Narrow Sideways Channel
A Narrow Sideways Channel is a formation that features both resistance and
support with a sideways movement. Support forms the low price bar, while
resistance provides the price ceiling.
To Trade a Narrow Sideways Channel:
Place an order to BUY on a break up and out of the channel, or SELL on a break
down out of channel.
Narrow Sideways Channel Tool
To illustrate a Narrow Sideways Channel in a chart use the Narrow Sideways
Channel tool.
Drawing a Narrow Sideways Channel:
1. Select the Narrow Sideways Channel tool from the Charting Toolbar.
2. Position the mouse pointer where you would like to place the top left point
of the Channel and click, continue to hold down the mouse dragging it to the
right bottom point of Channel, release mouse button to place.
Moving the Narrow Sideways Channel:
1. Select the Channel drawing by clicking on it.
2. Drag to the new location and release the mouse button to place.
Deleting the Narrow Sideways Channel:
1. Select the drawing by clicking on it and press the Del(Delete) key on your
keyboard.
2. Or, point the mouse cursor over the Channel and right-click, then select
"Delete" in the menu.
Resizing the Narrow Sideways Channel:
1. Select the drawing by clicking on it. Note: The drawing is selected when
boxes appear on the corners.
2. Click on one of the boxes on the corners to drag the select point and release
the mouse button.
Changing Properties of a Narrow Sideways Channel:
To view the Properties menu, right-click your mouse on the Channel drawing.
Properties that can be changed are:
Foreground - Changes the top and bottom lines of the Channel.
Background - Changes the inside colors of the Channel.
Line Thickness - Changes the thickness of the Channel lines. Choose values from
1-6.
Line Style - Changes the line style of the Channel lines. Choose from Solid,
Dashed, Dotted, and more.
Send to Back - Changes the layer of the tool. This option is used when more than
one tool is in the same area of the chart. Click on "Send to Back" when you need
to access a tool under the Narrow Sideways Channel drawing.
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