Trading Broad Bull Channels Flashcards
Bull Channels can be Tight or Broad
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Bull Channels can be Tight or Broad
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Broad Channels are Similar to TRs
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Broad Channels are Similar to TRs
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Broad Channel and TR are the same for 90% of the Bars
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/893/q_image_thumb.jpg?1598327361)
Broad Channel and TR are the same for 90% of the Bars
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/893/a_image_thumb.jpg?1598327351)
Broad Channel = Tight Channel on Higher TF
Traders should only be trading charts that have about 100 bars on the screen
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/896/q_image_thumb.jpg?1598327420)
Broad Channel = Tight Channel on Higher TF
Traders should only be trading charts that have about 100 bars on the screen
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/896/a_image_thumb.jpg?1598327415)
Broad Channel is Mostly in a TR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/907/q_image_thumb.jpg?1598327435)
Broad Channel is Mostly in a TR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/907/a_image_thumb.jpg?1598327439)
Line chart of a Broad Bull Channel
Broad Channel is just a Tilted Up TR
The Broader the Channel is the deeper the PBs are
The more Traders trade it like a TR and ignore the minimal bull trend
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/960/q_image_thumb.jpg?1598327635)
Line chart of a Broad Bull Channel
Broad Channel is just a Tilted Up TR
The Broader the Channel is the deeper the PBs are
The more Traders trade it like a TR and ignore the minimal bull trend
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/069/960/a_image_thumb.jpg?1598327631)
Broad Bull Channel sometimes is Always In Short
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/023/q_image_thumb.jpg?1598327697)
Broad Bull Channel sometimes is Always In Short
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/023/a_image_thumb.jpg?1598327693)
How do you know if a Channel is Broad?
Legs up and Down lasting mostly 5 or more bars
Size of avg leg is at least 3 times bigger than the smallest scalp
Size of leg is at least 2-3 times the size of the avg bar
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/025/a_image_thumb.jpg?1598327731)
Broad Bull Channels often contain TRs separated by BOs that occasionally can be big
60% of the the time in Trending TRs reverse
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/077/q_image_thumb.jpg?1598327778)
Broad Bull Channels often contain TRs separated by BOs that occasionally can be big
60% of the the time in Trending TRs reverse
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/077/a_image_thumb.jpg?1598327772)
Broad Channel Wedge Top
When there is a Broad Channel that is within one day on a 5min Chart, it is usually a WEDGE TOP or Trending TR Day
Broad Channel but Wedge Top Traders expect a reversal or TR not more bull trend
Not enough time for bull trend trade
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/148/q_image_thumb.jpg?1598327834)
Broad Channel Wedge Top
When there is a Broad Channel that is within one day on a 5min Chart, it is usually a WEDGE TOP or Trending TR Day
Broad Channel but Wedge Top Traders expect a reversal or TR not more bull trend
Not enough time for bull trend trade
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/148/a_image_thumb.jpg?1598327829)
Broad Channel Trending TR Day
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/180/q_image_thumb.jpg?1598327888)
Broad Channel Trending TR Day
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/180/a_image_thumb.jpg?1598327885)
Broad Channels on a 5 minute chart usually last how long?
Though 5 minute charts do not have obvious broad channels simply because not enough bars are displayed at one time on my chart to identify the broad channel
However Broad Channels on 5 minute charts last 2-3 days
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/184/a_image_thumb.jpg?1598327907)
Since legs in a Broad Channel often last 10-20 bars, usually not enough time to form channel in one day on a 5 minute chart
Since legs in a Broad Channel often last 10-20 bars, usually not enough time to form channel in one day on a 5 minute chart
Trade each segment as it is at the moment
I do not need to know that the 5 minute chart is in a Broad Bull Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/232/q_image_thumb.jpg?1598328161)
Trade each segment as it is at the moment
I do not need to know that the 5 minute chart is in a Broad Bull Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/232/a_image_thumb.jpg?1598328164)
Broad Channel on a 5 Minute Chart usually takes 2 or more days to form and show
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/268/q_image_thumb.jpg?1598328185)
Broad Channel on a 5 Minute Chart usually takes 2 or more days to form and show
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/268/a_image_thumb.jpg?1598328189)
If a Trader Prefers to trade patterns that last 3 or more days, it is often better to trade a higher TF like the 60 Minute
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/294/q_image_thumb.jpg?1598328208)
If a Trader Prefers to trade patterns that last 3 or more days, it is often better to trade a higher TF like the 60 Minute
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/294/a_image_thumb.jpg?1598328214)
a Broad Bull Channel on a 5 Minute TF is usually a fairly tight channel on a higher TF
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/310/q_image_thumb.jpg?1598328291)
a Broad Bull Channel on a 5 Minute TF is usually a fairly tight channel on a higher TF
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/070/310/a_image_thumb.jpg?1598328286)
Major Low Leads to a Strong Rally and New HIGH
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/093/q_image_thumb.jpg?1598328998)
Major Low Leads to a Strong Rally and New HIGH
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/093/a_image_thumb.jpg?1598328995)
Even when the market is in a Bull Trend it can still sometimes be Always In Short
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/466/q_image_thumb.jpg?1598329061)
Even when the market is in a Bull Trend it can still sometimes be Always In Short
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/466/a_image_thumb.jpg?1598329064)
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/484/q_image_thumb.jpg?1598329107)
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Most Trade Each Day by Itself is not Part of the 9 Day Broad Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/493/q_image_thumb.jpg?1598329159)
Most Trade Each Day by Itself is not Part of the 9 Day Broad Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/493/a_image_thumb.jpg?1598329160)
Day Traders usually only look at 1 - 2 Days of Bars
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/501/q_image_thumb.jpg?1598329178)
Day Traders usually only look at 1 - 2 Days of Bars
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/501/a_image_thumb.jpg?1598329183)
60 Minute Chart Traders use 5 min Charts for Early Entry
Same Chart but on a 15 Minute Chart is still Broad Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/541/a_image_thumb.jpg?1598329325)
Same Channel - 60 Minute Chart is a Tight Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/071/572/q_image_thumb.jpg?1598329390)
Same Channel - 60 Minute Chart is a Tight Channel
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Reversals are Common but Most Reversals FAIL
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Reversals are Common but Most Reversals FAIL
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Selloffs often have Strong Bear BOs to reverse to AIS then have a DB and Bulls Buy the Reversals up ALL DAY LONG everyday as they expect the reversals to FAIL
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/363/q_image_thumb.jpg?1598330966)
Selloffs often have Strong Bear BOs to reverse to AIS then have a DB and Bulls Buy the Reversals up ALL DAY LONG everyday as they expect the reversals to FAIL
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/363/a_image_thumb.jpg?1598330963)
All Trends are constantly trying to reverse but keep in mind that markets have INERTIA and they resist change - most tops fail
Often have DTs and MTRS but then Bull BO … the markets have inertia
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/404/q_image_thumb.jpg?1598330990)
All Trends are constantly trying to reverse but keep in mind that markets have INERTIA and they resist change - most tops fail
Often have DTs and MTRS but then Bull BO … the markets have inertia
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/404/a_image_thumb.jpg?1598330986)
TRs create a Broader Bull Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/411/q_image_thumb.jpg?1598331012)
TRs create a Broader Bull Channel
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/411/a_image_thumb.jpg?1598331006)
Minor New Lows are Common
TR often has a failed BO below prior HL as Bear reversals sometimes have strong pressure to create bear swings (AIS)
Be mindful that most BOs fail so a 2nd Leg Trap could Trap a weak trader into selling at the low in the TR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/456/q_image_thumb.jpg?1598331071)
Minor New Lows are Common
TR often has a failed BO below prior HL as Bear reversals sometimes have strong pressure to create bear swings (AIS)
Be mindful that most BOs fail so a 2nd Leg Trap could Trap a weak trader into selling at the low in the TR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/456/a_image_thumb.jpg?1598331076)
Whenever I look at a chart I must ask myself… where are we in the market cycle
Whenever I look at a chart I must ask myself… where are we in the market cycle
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/461/a_image_thumb.jpg?1598331130)
Whenever I look at a chart I must ask myself… where are we in the market cycle
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/474/q_image_thumb.jpg?1598331185)
Whenever I look at a chart I must ask myself… where are we in the market cycle
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/474/a_image_thumb.jpg?1598331189)
What often are Triangles ?
Final Bull/Bear Flags
When not clearly in a Broad Bull Channel, TRADE WHAT IS CLEAR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/476/q_image_thumb.jpg?1598331278)
When not clearly in a Broad Bull Channel, TRADE WHAT IS CLEAR
![](https://s3.amazonaws.com/brainscape-prod/system/cm/319/072/476/a_image_thumb.jpg?1598331280)