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In your opinion, which linear channels are most useful for technical analysis? - page 2

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louis73
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louis73 2017.03.16 13:54  
Carmine Pinto:

Based on my experience: Equidistant Channel is effective but you need to understand that most meaningful levels to mark on your charts are the result of collision of several technical factors included the swift momentum due fundamental factors on the same levels (not right to the pips) 

Technical analysis work as a self fulfilling prophecy most of the time (while other times even if you have a great technical analysis outlook it can be totally meaningles to the price dynamics and remain just a sort of graphic art in those cases) but the experienced traders is capable to increase the odds that a trade will work in his/her favour thanks to the global understanding of the market dynamics, not only one or two elements in your favor. This global understanding is especially required when you are conducting a serious business plan with large capitals.

Short answer: support/resistance levels created by the price itself.

Andrew's Pitchfork is a techinque based on price itself so it can be very effective for the Pitchfork expert.

Indicators like Linear regression channels, Bollinger bands or Standard Deviations Channels and others are just a rough indication based on the past, of course this doesn't mean that indicators can't be used succesfully.

Hope this help.

Kind Regards,‌

Nice and detailed explanation about what trading is  in reality.  Thanks!
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