It's a simple thing - this 6H channel.
If you see it it's there (at this point in time).
But life is not easy in trading - why are you here? Channels can change their shape. Sometimes they turn into wedges of various types.
Price does not 'obey' the channel. We don't really know for sure why these things happen.
The channel represents probabilities of price movement. I used to become overly involved with price itself many years ago. That was a mistake.
On a 6H channel, there is a lot happening to price within each of the candles. It is important to evaluate the price action within a group of big candles - from lower time frames e.g. 5 to 15 min - to see the momentum and volatility in there. That means you're not just throwing money at it - like dice in a casino.
You make your best estimate of direction. Calculate your acceptable loss (aka stop-loss) based on position size, ATR, time momentum, price momentum - and if it is mathematically workable then you enter a trade.
LOSS - the most important thing to control. It's the only thing you have control of.
Respect the loss.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
If you see it it's there (at this point in time).
But life is not easy in trading - why are you here? Channels can change their shape. Sometimes they turn into wedges of various types.
Price does not 'obey' the channel. We don't really know for sure why these things happen.
The channel represents probabilities of price movement. I used to become overly involved with price itself many years ago. That was a mistake.
On a 6H channel, there is a lot happening to price within each of the candles. It is important to evaluate the price action within a group of big candles - from lower time frames e.g. 5 to 15 min - to see the momentum and volatility in there. That means you're not just throwing money at it - like dice in a casino.
You make your best estimate of direction. Calculate your acceptable loss (aka stop-loss) based on position size, ATR, time momentum, price momentum - and if it is mathematically workable then you enter a trade.
LOSS - the most important thing to control. It's the only thing you have control of.
Respect the loss.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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