Fibonacci Channel
Most of the people think that human behavior is only copied in chart designs, but it can also be expressed in the formation of peak valley. This channel makes use of valley and peak formation in market and leads to assumptions on how topredict important changes in the way of trend safely. The main aim of this channel is to recognize the accurate peaks and valleys to work. Resistance lines and support can be drawn in few months and weeks, after detecting the perfect bottoms and tops in market. Only important bottoms an tops should be regarded for the base line of the channel with a single or more important side swings. The broadest swing within this time frame of base line is utilized for triggering a line. These channels are also regarded as process of guessing the resistance and support lines for a market. Even if this channel comes under the normal category of its studies for the purpose of technical analysis, these channels are not regarded as one among the famous tools utilized by the dealers. The place where the horizontal as well as the diagonal lines cross each other it is regarded as an exceptionally powerful support or resistance level in the market.