Hi guys.
I’m newly enrolled in the school of pipsology. I have a query regarding the explanation of channels
_To create an up (ascending) channel, simply draw a parallel line at the same angle as an uptrend line and then move that line to position where it touches the most recent peak. This should be done at the same time you create the trend line.
To create a down (descending) channel, simply draw a parallel line at the same angle as the downtrend line and then move that line to a position where it touches the most recent valley. This should be done at the same time you create the trend line.
When prices hit the LOWER trend line, this may be used as a buying area.
When prices hit the UPPER trend line, this may be used as a selling area."
I’m confused because I would think when prices hit the UPPER trend line, it could be used as a BUYING area and when prices hit the LOWER trend line, it could be used as a SELLING area.
Please help clarify my misconception
Many Thanks
Gilga