New chart tool released: Parallel Channel

7 Okt

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You can check the detailed explanation of the newly added chart tool by clicking the link address below.

tradingview.com/blog/en/parallel-channel-gets-more-levels-47030/

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The most important thing when drawing a trend line is where you designate the selection point.

Therefore, it is recommended to draw the trend line before starting a trade.

If you draw a trend line while a trade is in progress, you should be careful because your psychological state may be reflected when designating the selection point.

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You need to select 3 points to draw a parallel channel.

The first and second are the points corresponding to the trend line, and the third selection point is the point where the channel will be drawn.

Accordingly, I recommend drawing on the largest time frame chart possible.

I think that is the most objective way to draw parallel channels.

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The chart above is the 12M chart, which is the largest time frame chart.

If the 12M chart does not have the current candle arrangement, you should use the 1M chart.

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As in the example chart above, create a trend line by specifying the low point of the rising candle after the falling candle. (Specify 1st and 2nd points)

Then, complete the channel by specifying the high point of the candlestick to the left of the previous downtrend candlestick of the 2nd point. (Specify 3rd point)


If you draw it like above and look at it on a 1D chart, it will feel like it is drawn well.

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If you want to draw a 1D chart on a lower time frame chart, the 3rd point is the hardest to choose.

However, since you can designate it in the same way as you drew it on the largest time frame chart, you have to find out which point corresponds to the 3rd point.

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If you look at the current trend, you can see that it is forming a downtrend channel.

Therefore, you have to choose a point to create a downtrend channel.

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You can select and designate as shown in the chart above.

When drawing on the 12M chart above (when in an uptrend)
1st point designation: Select the low point of the rising candle after the falling candle
2nd point designation: Select the point of the rising candle after the falling candle after the 1st point designation
3rd point designation: Select the high point of the candle on the left of the falling candle to the left of the 2nd point designation

(When in a downtrend)
1st point designation: Select the opening price of the falling candle (wave) after the rising candle (wave)
2nd point designation: Select the opening price of the falling candle (wave) after the rising candle (wave) after the 1st point designation
3rd point designation: Select the low point of the rising candle (wave) to the left of the 2nd point designation

If you select in the above way, you can get a feeling that something is well drawn.

If you have your own drawing style, you can draw it that way.

I am just giving you an example of how to draw, so you don't have to follow it.

However, the important point is that you have to draw it according to the method of designating the selection point and creating a pattern.

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If you look at the 1D chart above, you can see that there is a vertical line drawn.

This vertical line indicates the high point of the StochRSI indicator.

Since the current trend is a downtrend, the high point of the StochRSI indicator is indicated, but when it is an uptrend, the low point of the StochRSI indicator is indicated.

And, based on that point, you can select the point according to the format of designating the selection point mentioned above.

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The trend line is a tool for chart analysis.


Therefore, in order to trade, the support and resistance points drawn on the 1M, 1W, and 1D charts must be indicated.

So, if you have confirmed the trend using the parallel channel released this time, you must draw the support and resistance points to create a basis for trading.

The reason is that since the trend line is diagonal, it is difficult to determine the timing to start trading.

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The method I am talking about is a method that anyone can understand.

The trend line you draw should be a point that everyone who sees various support and resistance points can understand.

Then there is no need to explain why you chose that point, and I think everyone can easily understand it.

If you have a good method that you are using, please publish it as an idea and make it public.

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Have a good time.
Thank you.

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8 Okt

Komen

#BTCUSDT.P

I tried to predict the trend using 3 parallel channels.

I drew on 12M chart and created long term channel.

I drew 2 channels on 1D chart. - The first is a downward channel that started from the first section that started to decline after rising.
- The second is an upward channel that started from the section that is currently rising.

What we can see through these channels is whether we can break through these sections around October 12th and October 26th.

A chart that consists of only trend lines or channels is not intended for trading, but rather for analyzing the chart.

In order to trade, support and resistance points must be indicated.

8 Okt

Komen

#ETHUSDT.P

If the price rises above the 2554.65-2645.82 range this time and maintains, it is expected to turn into a short-term uptrend.


Since it is located in the lower range of the parallel channel, it is expected to record a larger volatility than BTC when the uptrend begins.

The middle point of the parallel channel is the black dotted line.