HOW TO TRADE LIKE THEM CORRECTING MISEDUCATION

7 Jan 2021

Alright this been well over due. I’m sick of seeing traders drawing channels in trend lines wrong. But mainly channels as channels can be of value and can be a traders enemy. I’d advises traders to not focus on them but to focus on the range due to what I’m about to correct.

So what are channels for?
. If we think on it well soon understand why we draw them wrong. And by correcting our understanding of them we can maximize our profits by limiting our market exposure. The less your in the market the less loss you’ll take hopefully. And by drawling your channel correctly you’ll know when to enter.

Now let’s look a gu

How do we reflex price in a channel? Do we just connect the highs and lows? If so why? What’s the reason for this and how do it benefit you?

If you don’t start questioning things for answers you’ll never improve

So let start with what we are taught and this is to connect the highs and lows through frictions points right? And then we say price is rejected or respected the borders etc.
Family you could be nothing more closer to wrong than WRONG LOL. and they know this is what ppl do. And what happens price breaks or tap ur sl. And this is cause your channel don’t reflect price rejection but price acceptance. Now think on it cuz it’s a big difference.

And I guess this is probably why a lot of ppl got stop out gu this morning or cut their profits short.

So let me explain this price rejection.

Your drawling should show where price hits it’s extreme Limits and this only!!
Areas where they had made a barrier.
So until you can understand this visually
I’ll teach you how.

You grab the rsi on the timeframe you trade
You look for the extreme rejection limits of the overbrought and oversold.
You take two point for each, the two highest and two lowest
You line those up on the chart with a extending trendline connecting them

Now here it’s what it should look like and not what the smaller one looks like.
Note the high of the upper channel
We can see that price jumped out and went back in
This is cuz the rsi showed use that the outer area of the upper trendline is rejected .
So we now have an upper extreme limits.
Thus we shouldn’t consider selling gu until price get to this upper channel and bounce out and return to the channel.
This way we can sell and hold cus this was an extreme that is if price don’t break.
Now note we have no lower extreme . Thus we should be looking to buy off the lower trendline only and as we see the market brought when it reached it and we can see the mvwap as support where they buy the pair. As the mvwap is the best average. Why? It track volume with price continuously unlike the vwap. And all buying or selling takes place around it.. why? Cuz it gives the best price for assets. When price is near it this means price is balanced like a range. Thus I pay close attention to the market around it like I range. Anyway. Drawling these channels this way will limited the fake outs you enter and force you to trade at the extremes cus that is what they do. Ex if price gets to pricy they sell and buy when too cheap . This is the same principle here and with the average.

HOW TO TRADE LIKE THEM-