Channeling Stocks

Channeling Stocks earn their name because they trade within a "channel" or a wide range of support and resistance. For example if a stock has been hitting a high of $7.5 and then will bounce back down to a low of $6.00 a number of times within month or more, then every time the stock changes trends, you can bet that you're going to make a $1.5o gain per share if you change your position along with it.

This strategy can be either very lucrative or very expensive. I would recommend studying candlestick patterns if you decide to adopt this strategy as there are many signs and formations that can help foretell that a stock is going to break out of a consolidation pattern.