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Should You Trade Within a Channel or Wait for a Breakout?
The answer to this question is highly dependent on two variables.
First, what’s your trading style? If you trade between support and resistance within a channel, then by all means, do that. As they say, if it isn’t broken, don’t fix it.
Second, is that channel a corrective structure or part of a larger impulsive move?
That second question is the key to trend analysis. Without being able to answer that, you’re going to struggle to figure out which side of the market you should be on.
Every trend is made up of impulsive and corrective moves.
It doesn’t matter if you trade stocks, currencies, commodities or something else.
Daily Price Action
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