A channel forms when price action is controlled by 2 parallel, sloping lines ... Conservative traders may look for additional confirmation before entering a trade.
The main rules for an ending diagonal
This pattern subdivides into five waves.
Wave 2 never ends beyond the starting point of wave 1.
Wave 3 always breaks the ending point of wave 1.
Wave 4 usually breaks beyond the ending point of wave 1.
Wave 5 in the absolute majority of cases breaks the ending point of wave 3.
Wave 3 can't be the shortest.
Wave 2 can't be a triangle or a triple three structure.
Waves 1, 3 and 5 form like zigzags.
The main rules for an ending diagonal
This pattern subdivides into five waves.
Wave 2 never ends beyond the starting point of wave 1.
Wave 3 always breaks the ending point of wave 1.
Wave 4 usually breaks beyond the ending point of wave 1.
Wave 5 in the absolute majority of cases breaks the ending point of wave 3.
Wave 3 can't be the shortest.
Wave 2 can't be a triangle or a triple three structure.
Waves 1, 3 and 5 form like zigzags.