Tuesday, April 2, 2013

How to Trade 1 Hour Price Structure- Bull Channels

The 1 hour chart is in a strong and steadily reconfirming bull channel. In bull channel price structure, you want to buy the lows of the channel and sell around the highs or OPs. It is the opposite for bear channels, but the concept is completely the same. Continuing with bull channels, you want to stay away from shorting the lower range and buying the upper range because those are low probability trades. You want to wait for a breakout of the range before you start doing that.

I took profit on both contracts @ the origination point of the down move from yesterday in my main platform. The reason is because this is line of first resistance and high prob of stopping he shorts that went RF yesterday and then continuing in original longer term direction.


I still have 1 contract running with target above OP @ HOD in my other platform just in case this does pull up to the extreme top range of the bull channel price structure:

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