How to

first with horizontal line, then see what is current position, head lower? or bottom elevated? to draw slanted line. then make 'the channel' of that top & bottom (horizontal/slanted line).

when the price break the channel, make same size of the channel in that direction (this is actually 'Fibonacci' theory)

to see, what the very current position are? is the price in 'up trend' stage, or 'down trend', or 'sideways'?

most of all is to answer the question 

• is it at top/bottom position? 

• what should i do (buy/sell) ?

the answer come from the check list below :

if it's now 'up trend' / 'down trend'

• did they have 'slope' changed. as 'slope' (mostly) never changed for 3-4 times, that mean the current stage might be nearly end (but remember, before the change of direction, it's come 'sideways' but after 'sideways' doesn't mean it's have to change direction)

• if the price not fill 'the channel', can beware of changing direction.

• if price break channel, possibility change slope.

• when price break slope, it (mostly) go to next slope. (in term of break down, will go to previously slop)

• the angle of slope mostly the same, so if the angle is too wide, make imaginary line in it.

if it's now 'sideways' (only horizontal sideways)

• if their bottom(in sideways) elevated, it might be break upper line.

• if their top(in sideways) lower, it tend to break lower line.

• if the price test the line 3-4 times already (start with 0) it's tend to go to another way 

• sideways always smaller, the channel will keep thinner till it choose the direction (when it's smaller, start new count)

• sometime might have expand sideways , in the past mostly change to down trend.

some how, shape of MACD line can show potential of price direction as to 'slow down' or 'keep going' as if MACD line's slope show sign of 'slow down', the price's direction might be slow down too.

Divergence (different pattern between price & MACD, like price higher but MACD head lower) show direction might follow MACD pattern but sometime work, sometime not.

when have too much lines, it's make confusion and hard to read. first to see is, which line show no effect anymore? or which line already been break? like the channel that copy from the price break, if it already 3-4 time, that's mean you have another 'trend line' already (even the copy line still effect, but it make hard to read).

• 'sideways'&'downtrend' is hard, avoid investing during that stage as much as possible.

• only if 'sideways' have enough margin, but remember, the channel margin will smaller.

• when 'price' break the line, it's mostly come back to that line (sometime in shorter timeframe) if they can stand on that line(1 column candlestick) (mostly) the price will continue it their direction.

• always remember that the lines are all 'precautious' lines. no one know how strong or weak they are, no one know that the price would break the line or not.