If you want to learn how to make money with stocks channeling, then a good starting point is to be a member of a preferred stock channel screener firm and get a list of channeling stocks. A trusted channel stocks screener is ChannelingStocks.com where you have access to a channeling stocks website.
But what is stock channeling about? Do you know how to screen for channeling stock? This channel stocks review will answer all these questions and more.
What Is Stock Channeling About?
Channeling stocks are stocks that trade within a certain range, between high and low price points, for a period of time. Therefore, it may become predictable over time. When a stock repeatedly moves up and down in waves between two parallel lines, it is said to be a channeling stock.
A channeling stock trades in a wave pattern. It rises until it reaches a resistance level, and then it retreats until it hits a support level. This pattern is determined by investors.
Investors sell as the price rises, thereby taking profits, and anticipating they can buy the stock back at a lower level. This investor behavior creates a channel and channels may be rising or declining. There are three types of channels.
- A rising or ascending channel is when each new high and new low, is higher than the preceding ones.
- A declining or falling channel, is when each new high and new low is lower than the previous ones.
- Horizontal channels are when the resistance and support levels remain the same.
Stock channeling technique is one of the most widely used and efficient trading techniques. By studying markets to document support and resistance price trends, ChannelingStocks.com provide subscribers with a list of channeling stocks, thus helping investors to pick stocks that trade in a channel.
So, channels provide a way of buying and selling stocks when the price is moving between trend lines. The amount of time a price takes to move from high to low, or low to high, provides an indication of how long trades may last. But how does a channel stocks screener work?
How To Use Channel Stocks Screener
A stock screener is an essential tool that allows traders to wade through thousands of stocks, and return a dynamic list of stocks that match fundamental and technical criteria.
Trading channels can be drawn on charts to help see uptrends and downtrends in a stock, commodity, exchange traded fund (ETF) or forex pair. Traders can use channels to identify potential buy and sell points, as well as set price targets and stop-loss points.
Channels can be identified by studying stock charts. If you can draw straight lines connecting at least two highs and two lows on a trading page for a stock, and these lines are parallel, then you have found a channel.
The investing strategy with a preferred stock channel is simple: Buy when the stock hits the support level (so low) and sell when it reaches the resistance level (so high). Thus, buy low and sell high.
This video will take you through some of the preferred stock channel concepts.
A rising channel is considered bullish, and a falling or declining channel is bearish.
Preferred Stock Channel Concepts
Recognizing channeling stocks will provide opportunities to trade within the channel, or upon a break-out of the channel itself. The methodology used is to study charts.
A channel is the area between the resistance and support prices. These are the basic concepts:
- Resistance is the higher price of the stock, where historically, the price began to move back down.
- Support is the lower price where historically the price began to move back up again.
- Channel is the area between the support level and resistance level.
But, how do you apply the theory of what is stock channeling about? You want to look at confirming direction. Which is, wait for the price to start going back up from the support level, to make sure it is rising, and then buy.
So, confirming direction is waiting for the stock price to move back up off the support level, and to start moving to the resistance level. Just because the price goes to the support level, is not a guarantee though that it will go back up. Price moving up is also known as moving direction.
A unique aspect of what is stock channeling about, is knowing when you will sell it, even before you buy it. Watch this video that explains this theory in more detail.
Taking smaller gains over and over again.
How To Screen For Channeling Stocks
Recognizing channeling stocks will provide you with opportunities to trade within a channel, or upon breakout of the channel itself. Once you learn how to screen for channeling stocks, you will see that various trading opportunities exist at several points along the chart pattern.
There are several ways to trade channels:
- Trade within the channel: Long positions are entered as the stock price bounces off the support line, and then sold close to the resistance level. Short positions are entered as the stock price bounces off the resistance line, and covered close to the support line.
- Trade in the direction of the channel: Long positions can be entered in an ascending channel, riding the price upward until the support line of the channel is broken. Short positions can be entered in a descending channel, and then exit once the stock price has broken through the resistance line.
- Trade channel breakouts: This trading strategy doesn’t provide an exit point. As the stock price breaks through the resistance line, longs are entered. And shorts can be entered when the price breaks through the support line.
Check for channels in different time frames, as a channel can be over various different time frames. The channel you are currently trading in one time frame, may be an ascending or descending channel of a longer time frame.
By checking other time frames, many times you can predict when a channel will be broken. Therefore, choose the appropriate time frame for your particular type of trading.
Use weekly or monthly charts for long term trading, daily charts for short term or swing trading, and intra day charts for day trading.
Before investing real money, make some paper trades so you can fully understand and recognize the channels.
Channel Stocks Review
You want to buy and sell stocks in the channel. When investing in the stock market, it is not when you buy that counts, but rather when you sell. Selling your stock is key. So, you want to know at which price point you will be selling your stock, even before you buy them.
Knowing when you are going to sell before you buy the stocks, helps to eliminate the emotional factors of fear or greed. Emotional factors of fear and greed are what sometimes push or pull individual investors.
ChannelingStocks.com have been a trusted partner for members for more than 23 years. It is strictly a research firm that provides their customers with a list of channeling stocks in an active channeling pattern.
ChannelingStocks.com provides their members with stock charts every week. They monitor stocks and identify those that trade in a channel, to provide their members with a list of channeling stocks every week.
New selections are listed once a week, normally on a Thursday night by 8.00 pm Central Time.
The old stock market theory is to buy and hold. Instead, Channeling Stocks website sees an opportunity to buy and sell over and over again. However, they do not give “buy” or “sell” prices.
What is the criteria for selecting stocks that ChannelingStock.com uses? ChannelingStocks searches charts trying to locate stocks with a minimum 10% price movement, as well as a minimum average daily trading volume of 50,000 shares per day. But they are always looking for shares with more.
On the Channeling Stocks website you can practice to trade. Simply go to the “practice trading page” where you can start paper trading.
You need to be honest with yourself in your practice, and use numbers that you would use even if it was real money, and not just paper trading.
Also remember that you will not “buy” every stock, as you will only be “buying” stock, if it is establishing itself above the support level.
On the Channeling Stocks website you will find a research center, sample reports, trading concepts and extensive FAQ section.
Tip: For the best results, stock channeling should be considered in combination with other technical analysis signals and technical trading techniques.
Learn How To Make Money With Stocks Channeling
Paper trading, or practice trading, is the best way to learn how to make money with stocks channeling. You will be in a much better position to know what is stock channeling about, before using your hard-earned money.
When you start paper trading, be realistic with the amount “invested”. Don’t buy a stock just because it is as the support level. If in real life you would only invest $1,000 in a stock, then do the same here. Wait for the stock to be clearly moving up, before buying it. Take smaller profits again and again.
Knowing when you are going to sell, before you buy, applies to both the upside and the downside. Paper trading is the place to learn with an “over the shoulder” view.
A minimum of 2 months of paper trading is recommended, or at least until consistently hitting 80% on your paper trades.
So, practice trading, or paper trading, is described as a hypothetical trade. It is recorded and tracked on paper, without using actual currency. Once channeling stocks have been found, they offer great investment opportunities.
Although channeling stocks can be very profitable, they can be very time-consuming and difficult to find from the thousands of stocks that are traded on the stock exchanges on a daily basis.
Therefore, it is strongly recommended that you use a channel stocks screener, to find stocks that are trading in a channeling pattern and provide you with a list of channeling stocks.
A preferred stock channel service, like ChannelStocks.com, has developed the tools and algorithms to find a list of channeling stocks on a daily basis. The benefits of trading channeling stocks, can be significant.
Benefits Of Channeling Stocks
The greatest benefits of a channeling stocks strategy, is that it gives precise entry and exit points. Using a system that employs strict buy and sell signals, means greed and fear, a trader’s worst emotional enemies, are removed from the equation.
- Channeling stocks provide a good entry point. Buying a stock at its support price, is one of the safest and best places to buy stock. A stock doesn’t become a channeling stock until it has established a support price and a resistance price. This is done by repeatedly touching its support price and resistance price. Once the support price has been established, the stock can be bought over and over again, as the price returns to its support price.
- Channeling stocks also provide an exit point. As mentioned above, once a support price and a resistance price has been established, a stock becomes a channeling stock. When a stock is bought at, or near, its support price, it should then be sold as it approaches or reaches the resistance price. This is because the chances are high that the stock will once again reach its resistance price, and turn back down towards its support price.
- Channeling stocks provide a good stop-loss price. Not all channeling stocks will always move up from their support price. A good place to set a stop-loss trade, would be a percentage or two below the support price. This way, if the stock does not bounce back up from its support price, stock can be sold at a minimal loss.
Since channeling stocks have established a repeatable, predictable pattern, an entry and exit price can be determined. A low risk, stop-loss price can also easily be determined.
List Of Channeling Stocks
It takes time and experience to recognize a preferred stock channel. This is where ChannelingStocks.com, with their channel stocks screener, can help you. ChannelingStocks.com locates stocks within the channel for their customers.
Learn how to make money with channeling stocks and subscribe to their newsletter. You will receive at list of channeling stocks every week.
As a subscriber you get at least 12 new stocks every week. Who is channel stocks review best for? Their client base is across the board with 85% returning customers. From private investors to professional traders, the list of channeling stocks provided by the preferred stock channel screener, can be used by everyone.
Depending on where in the world you live, and the preferred stock channel options that you are most interested, the Channeling Stocks website offers different services.
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There are numerous testimonials on the Channeling Stocks website from happy investors. These are just a few of them.
Final Thoughts On ChannelingStocks.com
Channeling stocks is a simple effective trading strategy that works well for beginners, as well as professional traders.
Everyone invests differently. ChannelingStocks.com is a more conservative way of investing, whereas you may be more of a risk taker and aggressive investor. Only you can decide how much risk you are willing to take.
ChannelingStocks.com can help you by providing you with a list of channeling stocks. Subscribe today and add Channeling Stocks website and newsletter to your investment toolbox. It will maximize your chances to add to your bottom line, even in a volatile market.
As you become more familiar with the theory of investing with ChannelingStocks.com, your nervousness of being an investor will subside. If you have any experience or questions about preferred stock channel tools, or signing up to the Channeling Stocks website, please leave them in the comments below
Disclaimer: All information provided herein is for informational purposes only. It should not be construed as financial advice. Trading stocks involves risk and may not be suitable for everyone.