Channel Breakouts

The channel breakout is a continuation pattern trade setup that utilizes theTutorial Magnifying Glass many support and resistance levels that occur within all charts.

The setup works best in strongly trending markets and occurs where price has consolidated within a  clearly defined range sandwiched between both a support and resistance level.  Finally price builds up enough energy to breakout of the channel, most often continuing in the direction from which it entered the channel to continue the dominant trend.

Check out the video below for further explanation.

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