Usually, In pattern trading, we focus upon breakouts from te pattern. But there is one method to earn a bit of small profit with good R:R and that is trading the channel itself. It may be a horizontal channel,i.e., rectangle or a upward or downward sloping channel. It may also be a triangle.
The idea is to go long on every dip when the price touches the lower trendline,make pivot and starts moving upward. Stock should be shorted at upper trendline. The only caveat is that one needs to find stocks where channel is wide to accomodate the entries and exists.
Today's examples of trading the channel are.
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