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83 Trading within a range is not what I like to do. There are plenty of better opportunities elsewhere. Yet, one must learn to trade in trading ranges. At times there no better choice. 1 hope that I have shown enough of what its like to cause you to proceed with great caution. Up to now I have covered a number of overall trading situations. There are two more aspects of the market I want to cover. They have to do with channels and some thoughts i have on them.
Trading By The Book - Part V CHAPTER 4 annuls The two situations I want to cover concerning channels are: trading the breakout oi a trending channel, and trading within a trending channel. Ive been asked how I handle these situations. Actually, I never trade these two situations as channels per se. I trade them as I would trade any established trend, picking up the breakout of one-two-three situations, hooks, and ledges, and getting out on /s, AAs, \/\s, and Ws, or upon penetration of an offset moving average. But I recognize the fact that many people who are not dyslexic like myself, do not feel comfortable unless they can draw trend lines on charts in order to gain perspective. With that in mind, I will show how I would handle the breakout of a trending channel and trading within a channel. What t show is by no means complete, I offer it only hypothetically. There are entire books out there on how to properly draw a trend line. I cannot possibly say which, if any, are correct. 1 dont know if Ive drawn them where others would have done so. As Ive tried to do throughout the manual, I will use pictures to describe what my actions would be. } ( When trading with a channel, I would sell the overbought signals on an oscillator in \ a downtrending channel, and buy the oversold signals in an uptrending channel.
BRITISH POUN  Figure 17 The things to keep in mind while viewing this figure are: That an oscillator can at times give a jump on the breakout of the number two point; That an oscillator will not give as many signals as there are opportunities to trade one-two-threes, ledges, and hooks; ob/os is at 25%-30%/70%-75%,
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