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What is Bearish Channel How to trade on this pattern?

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Posted by : Nifm
18 January, 2016, 3:45 PM
What is Bearish Channel How to trade on this pattern?
A Channel is a price movement which is bound by a lower and upper trend line.  The upper trend line work as a resistance and the lower trend line works as a support.  Price channels with negative slopes are considered bearish and those with positive slopes bullish.    In this situtation normally trader sell around resistance buy around support but whenever price cross the resistance level with high volumne trader try to buy position for big targets.   If you will watch the attached chart you can easly identify this pattern. now price is trading around supportive level. But one think we noticed that sellers volume is high so we will wait for bullish reversal candlestick pattern. and then we will look for buy position.

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