One of the most effective trading strategies is to look for Forex Channel Patterns on a chart. This trading system is easy to learn and master. Price rebounds from a hypothetical line, but it must wait until it breaks out of the channel to enter a trade. Traders normally enter trades at the breadth of the base channel. Here is a brief overview of Forex Channel Patterns.

A channel pattern is made up of two parallel lines that are at least equal distances apart. Two points surround the price action. The top of the channel is indicated by a red arrow. Sometimes, the channel continues downward. It is important to understand that a single channel can develop both a short-term and a long-term trend. There is no doubt that the descending channel is one of the most popular Forex trading strategies, regardless of the time frame in which you choose to trade.