Hello David,


I would like to thank you for answering my previous two questions.

I made a mistake on the first question. I am actually asking about Channel Trading and NOT Range Bound Trading.

So here is my questions regarding Channel Trading:

1.) In Channel Trading should the support line and resistance line always be
in parallel? What will happen if in an uptrend the resistance line is in a
different angle than that of the support line?

2.) In Channel Trading is it recommended to use a combination of trendline
analysis and MACD?

3.) Is DeMark trendline recommended in Channel Trading?


Thank you very much!


Regards,
Jeff

Hi Jeff,

My pleasure.

Yes I think most traders would agree that the lines should be parallel. If they are not then the pattern that is formed is not a channel but either a wedge or triangle which you can learn about in Module 2 of our Free Video Trading Course here.

I think most traders would agree that you definitely need to use trendlines as a part of your approach. I could also think of ways that the MACD could be used. If you would like to post how you are using the MACD in this scenario then I could provide a better opinion here.

How to Draw DeMark Trendlines

As noted in the above article DeMark trendlines are simply another way to look at the trend. So with this in mind if you are looking for additional insight into the trend then I think most would agree that yes they can be of benefit. On the other side of this I think many would argue to just keep it simple using normal trendlines.

Best Regards,
Dave