Post of the Day: Ascending Trading Channel

Student’s Question:

Enter: 1.2706
Stop: 1.2656
Exit: 1.2806 ??

Power Course Instructor’s Response:

Nice job…

Taking a trade in the direction of the trend on the Daily chart off of the support line of an ascending channel is a higher probability entry.

Keep in mind that it is important for a candle to be closed before we based a trade on it and, while I like the 1:2 Risk Reward Ratio, be certain that the stop is comfortably below the lowest candlestick of the last two on the chart.

Good work…