within which the current short trade is progressing. Important things to note are 1. Price knows where these channel lines are. See how it reacts to them. 2. Every time price takes out a channel line, it pulls back, regrouping so it can take out the next channel line down the channel. 3. Never sell towards any of these channel lines. Price will retrace when it takes out that channel line. You should only sell when price has retraced and found resistance to one of the channel lines that have been taken out. 4. The current short trend should terminate when price takes out the bottom channel line or the one immediately above it. Hope this little helps.