Channel Strategy

Required Indicators:    Trend Lines

Recommended Trading Environment:    Prior to fundamental market event or when used prior to open of major financial market

Rules for a long trade (rules for short trade are opposite):

1.    Identify a channel on intraday or daily chart; the price should be contained within a narrow range
2.    Enter long as the price breaks above the upper channel line
3.    Place a stop just under the upper channel line
4.    Trail your stop higher as the price moves in your favor