Ascending Channel
BullishContinuationBeginnerPrice climbs between two parallel lines. Buy the bounce off the floor.
Verdict: SkipBitcoin 4H: 8 trades, won 38%, avg trade −2.3% vs random day +0.2% (too few trades to judge). Backtest
Price climbs in steps. Each low is higher than the last one, and so is each high.
step 1/7
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | Two rising, roughly parallel lines through 2 swing lows and 2 swing highs. After a new swing low touches the lower line, a candle CLOSES above the bounce's high within 10 candles. |
| Cancelled if | Price trades below the touch low before that close. |
| Target | To the top line |
3 common mistakes
- Buying the touch before price proves it bounced.
- Calling two rising lines a channel when they converge: that's a wedge.
- Taking the trade when the top line is closer than the stop.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 8 | 38% | −2.29% | +0.17% |
| US large caps (50) · 1D · 2016-2026 | 97 | 57% | +0.37% | +0.88% |
Verdict: SkipIt made money, but less than buying on a random day. Bitcoin had too few signals to judge.
pattern +36%random +85%