☄️Trend Channel

The Trend Channel is used to identify trends and potential support and resistance levels.

The Trend Channel is a straight line that best fits the prices of a given asset over a specified time period. The Trend Channel is created by drawing two parallel lines that represent potential support and resistance levels for the asset.

Traders use the Trend Channel to identify potential trading opportunities. If the price of the asset is trading above the upper line of the channel, it may be considered overbought, and traders may look for selling opportunities. If the price of the asset is trading below the lower line of the channel, it may be considered oversold, and traders may look for buying opportunities.

Overall, the Trend Channel is a useful tool for traders who want to identify potential support and resistance levels and assess the strength of a trend. It can be used as a standalone tool but would better serve as additional confirmation together with long & short zones.

Here you can see the function of the trend channel. Traders can enter shorts at the top and longs at the bottom or just it as a method of identifying current trend direction.