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Charting Tools
Let's Get Technical
Trend Channel Tool
Identify an Inclining or Declining Channel by selecting the Trend
Channel tool from your Charting toolbar. Position the mouse pointer
where you would like to place the top-left point of the channel and
click. Move to the bottom-left point and click again. Move to the
bottom-right point and click again. Position the mouse pointer where you
would like to place the top-right final point of your channel and click
to place.
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Channels - Technical Analysis
A
trend channel consists of a section of price bars that are
between parallel support and resistance lines. There are three
types of channels: the Narrow Sideways Channel, the Inclining
Channel, and the Declining Channel. |
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Narrow
Sideways Channel
A Narrow
Sideways channel is a formation that features both resistance
and support with a sideways movement. Support forms the low
price bar, while resistance provides the price ceiling.
To trade
a Narrow Sideways channel, place an order to buy on a
break up and out of the channel, or sell on a break down
and out of the channel.
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Inclining Channel
The
Inclining channel is a formation with parallel price barriers
along both the price ceiling and floor. Unlike the Narrow
Sideways channel, the Inclining channel has an increase in both
the price ceiling and price floor. The breaking of the bottom
trend line on this formation shows a change in trend from
bullish to bearish.
To trade
an Inclining channel, place an order to sell on the break
down and out of the channel.
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Declining Channel
The
Declining channel is the exact opposite of the Inclining channel
formation. The Declining channel has a decrease in both the
price ceiling and price floor. The breaking of the top trend
line on this formation shows a change in trend from bearish to
bullish.
To trade a Declining
channel, place an order to buy on the break up and out of
the channel.
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Resizing the Trend Channel
Select the channel by clicking on it. You will know the channel is
selected when boxes appear at the corners. Click on a box and drag it to
your desired location. Release the mouse button to place.
Moving the Trend Channel
Select the channel by clicking on it. Drag to the new location and
release the mouse button to place.
Deleting the Trend Channel
Select the channel by clicking on it. Press the Del (Delete) key on your
keyboard. You can also right-click the channel and select “Delete” from
the dropdown menu.
Preferences
Select the channel by clicking on it. The properties will appear in the
preferences section of your control panel.
Restore Settings: TNT Default will change your settings back to the
original software settings. My Default will change current settings to
your personalized default settings. Apply To All Charts will apply your
selected settings on all open charts. Save As My Default will save your
current personal settings.
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Trend Channel Tool: You can choose the color, line style,
and line thickness of your lines, as well as the background
color.
Select Snap to have your lines snap to price bars when
moved. |
Example of Inclining and Declining Channels
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