$COS #MyCOSTrade

Choosing an entry point in a downtrend

Any textbook will tell you - trading in downtrends is risky, especially for beginners.

But this is only for those who do not draw trend channels. Let’s see how to trade in a downtrend using the example of COS.

We determine the trend and draw the trend channel (screenshot). We see that the price magically does not go outside the boundaries of the channel. It goes down, but always bounces off the return line of the trend, rises up, but does not break through the main trend line. This will continue until the trend changes.

Next, our task is only to extend the channel a few days ahead.

Entry point: the lower line (or return line of the trend) - this is our support.

Exit point: short-term - the middle line - can be strong resistance.

After breaking the middle line - it will become the new support, and the upper trend line - will be resistance.

Attention! Always take the entry point slightly above the line, and the exit point - slightly below. You are not the only one trading in the channel 😉