Channel breakout

Posted by Scriptaty | 9:10 PM

A basic trend-following technique that goes long on a move above the n-day high and reverses and goes short on a move below the n-day low, with the expectation price will continue in that direction. For example, a short- to intermediate-term channel breakout approach would be to buy when price moves above the 20- day high and short when price falls below the 20-day low.

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