This talk about channels for a minute. Huber got an upward trend and as we discussed previously we can draw a support line which represents a diagonal which is kind of guiding the price and the price keeps bouncing off it in its journey to the top. Now what are we going to do. We’re going to take this diagonal and we’re going to copy it and we’re going to put it above the price . So there it is. It’s got the same angle as the first one and it’s sitting on one of the highs of the process. So once again as you can see here the price is also bouncing off this diagonal as well and bouncing downwards. The price is kind of moving in a channel or Korder. Now what are we anticipating from the price of four. Well right now we are probably expecting for the price to bounce off the top border and then to go back up. This is where we would enter into by order or so once the price has bounced off we would wait for it to hit the bottom of the channel and to buy order. And if the price goes in our direction once it hits the top border again thats when we would close our trade. So its important don’t hear that in an upward channel you it is recommended to trade only by orders . And why is that. Well let’s step back take a few steps back for a second. At this stage we are anticipating for the price to go down. So we could technically conduct the sell or. But its not advisable for two reasons. First of all we’d be trading against the trend and that’s something we said we shouldn’t do. We should always trade with the trend and second as you can see here the downward movement is actually smaller than the upward movement. So in an upward channel if you create sell orders you will always earn less than if you create by orders . So that’s another reason why in an upward channel you should only trade by. Next we’re going to look at a downward channel. So here we’ve got a downward trend. We can draw a resistance line if we copy that line. We can see that very often the price will also follow the copied line so it won’t break through it will bounce off that line and channels of very common on the 4 X market and you’ll see that from our live trading on the real account. Further down in this force. So here we’re expecting the price to go pop there will conduct to sell order and we’ll close our order . Once the price reaches the opposite side of the channel. So once again in a downward channel it is advised to open sell orders because you’d be in this case you’ll be trading with the trend and you get longer movements. And so those are the two main ways of trading channels. It’s actually a one way but in two different types of channels and it’s always trading inside the channel and more often than not the price does stay in the channel. But sooner or later of course the price will break the channel and that’s why there’s an alternative strategy where and this case is sort of opening a sell or you would open and buy order and you would expect the price to go up somewhere out of the channel you would use this strategy. When your other analysis is telling you that this channel is getting too old and the price is going to break through it. So when a channel is quite new There’s more chances that the price will stay inside when the channels have been around for a while. The chances of the prize breaking out are constantly growing. Both strategies are valid. Depends on the situation and what your other technical analysis tells you. So to sum up of channels direction trade with the channel stay inside the channel it’s more likely that the price will bounce into the channel as an alternative strategy which is a breakthrough strategy and that is used when you expect the price to break free from the channel