Topic: Why are channel lines useful / How does one plot channel lines on Tradingview? (Read 161 times)

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I've been using channel list on my traiding every day. A channel can be used as an entry pattern for the continuation of an established trend, as part of a trend following strategy. A channel forms when price action is controlled by 2 parallel, sloping lines and has tested each of these lines at least twice. An ascending channel indicates a bullish trend, with the support line connecting consecutive higher lows and the resistance line connecting consecutive higher highs.

I just noticed your reply, thank you for the explanation, it looks like I have to draw the lines myself. I was thinking they're supposed to be drawn at lows or highs of close-together candlesticks, but my lines end up being too steep. I had better luck drawing them at the edges of the Support Resistance MTF indicator. But practice takes perfect I guess.

I use tradingview for my analysis when I'm using a computer and either tabtrader  or tradingview Mobile when I'm on mobile.

Firstly, To draw trend lines, check the left side of the chart, you should see a toolbar at the far left corner. The first icon you see is the one to change your cursor. Skip it and move to the next icon . It's the one that allows you to access drawing tools like horizontal lines (support/resistance) check the list for trend lines. Click it and connect the points to get your points. See: https://www.babypips.com/learn/forex/trend-lines on how to draw them correctly.

About trend channels, you can draw them manually using trend lines or you can use the parallel channel tool provided by trading view. You can access it the same way you accessed the trend lines tool. See: https://www.babypips.com/learn/forex/trend-channels for how to draw them correctly.

Here's a snapshot to guide you on how to access both trend lines and trend channel tools on trading view:

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Ascending and Descending channels are useful because they can guide you on the appropriate level you should open a position. Ideally,  you  long at the bottom of the channel or  go short at the top of the channel in a downtrend (assuming they don't break). This ensures that you get a nice entry. But like other trading analysis tools, don't rely too much on just trend lines and channels. It's best to combine them with other tools for instance, support and resistance or fibonanci retracement levels.

I'm looking for a way to draw ascending and descending channels on the charts I make on Tradingview, but I couldn't figure out the function that plots them. I see people here using them a lot so I want to be able to study price charts with these lines too. In case you guys don't use Tradingview, what platform are you using to plot the channel lines?

And also, another question, what makes ascending and descending channels so useful for predicting Bitcoin price movements? I want to know their properties.