How To Read Channels

....now have three points.... to form a down channel

 

.....spy 10 min .....
.... down channel.... possible....

 

..... broke out and bounced on top wall of channel.....

 

..... bounced on center line .....
.... of old channel .....

 

possible... unconfirmed....
up channel on 5 min spy
..... edit... unconfirmed on this one because not constructed properly ... don't have three points yet....

 

It looks like you're drawing channels like I do. First I draw either an uptrend (higher lows) or downtrend (lower highs) line, which of course requires 2 points. Then I duplicate the line and move it away (up for an uptrend or down for a downtrend) so as to just capture all the price action. This only requires 1 touch. The channel now has 3 points.

I don't draw a center line (yet). Is the center line just another line parallel with the outer rails placed in the exact middle?

 

up ... two on top
down...two on bottom
....one opposite between the two

50% on centerline..... yes

.... if you don't have three proper points.... and you have no idea where the channel might be....
.... and you want an idea of where it might be.... then you can draw a regression line.... to get an idea of where the centerline might be.... over the price action you want to cover....
.... of course this is only a sub until you have three proper points

....just my view.... not the only view of course

 

So just to clarify: When you say "two on top" for "up" do you mean 2 touch points or 2 parallel lines above?

 

....up channel.... 2 touch points on bottom....
... for example....
.....opposite point has to be between those two.... it can't be to the right or the left....otherwise i call it "unconfirmed"
..... just my view

 

busting thru old channel top