How to Trade Channels: AUD/CAD, AUDUSD, NZD/USD and GBP/CHF

By Deya Hroob

 

Technical analysis for next week AUD/CAD,AUDUSD, NZD/USD ,GBP/CHF

Channels are just another tool in technical analysis which can be used to determine good places to buy or sell.

Both the tops and bottoms of channels represent potential areas of support or resistance.

 

How to Trade Channels?

There are two ways to trade such pattern depending on the type of traders.

Aggressive traders look for the bottom trendline to open Long positions with stop loss below the line. However, they look for the upper line to short the pair with stop loss above the line.

Conservative traders to wait for the price to break through either trendline. They put sell order just below the bottom line and long order above the upper line.

AUD/CAD Trade idea for next week:

This is a 4h chart trading set up.

As you can see from the chart above, the price is moving in a channel, giving us great opportunities to buy and sell from both trendlines. You should also notice the strong structure just above the channel.

You could sell from the upper line OR sell on a breakout of the lower line.

AUD/USD Trade Idea for next week.

 This is a daily chart trading set up.

Applying  the same trading channels rules, you could sell when price touches the upper line with stop loss above the line.

Also, you may put buy limit order above the upper line. On the way down, the lower line may offer potential buying area wit stop loss below the line.

Now, you can apply the same rules on NZD/USD and GBP/CHF pairs.

GBP/CHF Trade idea for next week:

NZD/USD Trade idea for next week:

Good Luck,