Bear Price Channel Chart Pattern Video Lecture - Chart Pattern Trading

good afternoon everyone this is
Christian with perfect stock alert calm
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please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we're gonna be
looking at the bear channel this is a
continuation signal and a bearish signal
on the condition of a bear channel
channels can be bullish or bearish in
this particular case we are looking at a
bear channel the main difference between
a channel and a rectangle will be that
the rectangle chart pattern is
horizontal there's no positive or
negative slope to it while the bear
channel obviously has a negative slope
the first thing you're gonna notice is
the main trendline this right here okay
we just made trade line right here
you've got to have at least two main
points to draw that trend line on it
preferably you would have more than that
you don't want to be too quick to call a
channel formation thinking it's bearish
or something and then find out later on
that it's actually a descending wage or
something of that nature you don't get
those wires crossed so that's why it's
important or preferred to have multiple
Peaks to run that line across okay once
you've run that first trendline and your
resistance level there you can simply
take and stockcharts.com allows you to
simply grab this and duplicate it you
can run a very simple method and pull it
out and it'll give you a perfect
parallel that's what you're gonna do to
get the channel line right here the
channel line is basically there's two
ways to do it
you can set it at the low points
typically local here local here you've
got to have at least two to draw a
trendline but again more the merrier and
you can simply draw that trendline out
across those low points there have to be
exact pretty pretty close some guys will
also instead of doing that they will
simply find the lowest point in the
channel and draw their trendline there
they're parallel trend line at that
point I understand why they do that
they're doing that to keep themselves
from being
unnecessarily stopped out for example if
you were over here and you had to stop
here your your you know wait for the
balance and shorty here and then playing
this game over and over again you can
find yourself in situations where price
activity moves a little bit further than
you expected and then you try to get
back down you're chasing stock it's not
good however to set your trendline at
the lowest point you have to know where
that lowest point is so I don't really
think it works all that well I mean this
over here you may have considered the
lowest point at that time in you know
but down the road it's no longer the
lowest point now it's over here you're
going to keep adjusting every time you
get a lower low it's up to you how you
trade it I would personally just keep it
it's close to the support lines as
possible and the support line is
obviously right there you do have a
Pierce over here jumps back above it and
starts respecting it again before it
breaks down let me clean this chart up
very quick those okay to trade this is
quite obvious you'd simply add a bear
channel look for opportunities to go
short once you had your two lines you've
drawn it out you can find situations may
be here when short stop just above that
previous high your highs are gonna keep
going lower and lower taking the one
here may have had one here and just
trade it down to the support line and an
exit and just keep repeating that
process again and again I wouldn't
personally try to go from the long side
in a bear channel because at some point
in time this is going to happen so I
preferred not to trade that side in the
case that you will will get to a bullish
channel later but in a case that price
activity actually pulls back down and
closes below your support line what does
closed below that is considered that
price activity the sell-off is
increasing in momentum and that's really
big move to the downside is expected
thereafter you can get a price target
but how low you expect it to go once it
has broken down by simply taking the
distance between the two bars or the two
trend lines and then adding that or
subtracting that to the breakout point
again targets are only to be used as
targets they're not set in stone so you
know keep your wits about you but gives
you some idea of how low you expect
price to fall please take a moment to
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