Auto Channels Levels

Auto Channels comprises of the various levels. The most important levels are the Channel Support and Resistance. These levels indicate the trend and the breach of it, indicates a trend reversal

The Entry Range is defined by two lines. The Entry Range is an effective balance of Momentum and Risk involved. It is advised to enter any trade within the entry range.

The Caution Level is the level, which when breached gives the first indication of loss in momentum. If the Caution level is breached, over 80% of times the trend turns into a phase of consolidation within the Channel and the Entry Range. The consolidation may break out in either direction. As such it is advised to exit trade near Entry Range (near cost) keeping Stop Loss at breach of Channel and wait for the next signal.

The Profit Scaling Level and Target Level may be used to book Part and Full Profits respectively.

Colours of all Channel Lines of Auto Channels:

1. Channel Support - Dark Red Line
2. Channel Resistance - Dark Green Line
3. Entry Range - Red and Pink Lines
4. Caution Level - Golden Line
5. Profit Scaling Level - Light Blue Line
6. Target Level - Dark Blue Line