A channel line, or as it as sometimes called, return line, is a variation of the trendline technique. Occasionally, prices will trend between two parallel lines, the trendline and the channel line. This event can be used to a profitable advantage once the trader recognizes that a channel exists.

Sometimes after the up trendline is violated prices fall some before rallying back up to the old trendline. How can you take advantage of this?

Bad signals can be eliminated when a trader uses time and price filters to try and isolate valid trendline penetrations.

To arrive at a price objective, the trader can base his decision on the height of the pattern. Read more from Andy Swan.

There are a few preliminary points considered common to all reversal patterns that you should absolutely know before trying to pick a top or bottom in stock trading.

A symmetrical triangle has a time limit, which is the point where the two lines intersect forming the apex.

The symmetrical triangle, or coil as it is sometimes known, is usually a continuation pattern which represents a pause in an existing trend.

The three most commonly used triangles are symmetrical, ascending and descending.

Harley-Davidson (HOG) has an almost perfect example of an Inverse Head & Shoulders today.

Andy Swan takes a look at the 4 Week Rule trading system.