Price channels help define the trading range of the market and if you can be flexible in re-thinking their parameters when the trend has changed, channels can reveal a plethora of opportunity. Envelopes, moving averages, bands and channels can seem to the beginner just different ways to do the same thing, or at least closely related. The truth is, they basically are the same ― two or more lines that define levels where once price travels outside one of the outer lines, a signal is generated. Of course, the major differences in all of these "lines," is in their calculation, in their spacing or bandwidth and how they are interpreted.
展开▼
