Price channel day trading strategy

The most important thing about a price channel is the directional bias it gives you.  A bullish price channel has higher highs and lower lows and it tells you the buying at support will be the highest percentage trade at that time.  The opposite is true for a bearish price channel with lower highs and lower lows, we know to sell at resistance for the highest percentage trades each day.

I use a simple day trading strategy for price channels, which tells me to buy the lows, sell the highs, avoid the middles, and never try to force buying at the highs or selling at the lows.  In my experience there is nothing worse than trying to buy the highs of a bullish price channel, or trying to sell the lows of a bearish price channel.

Another aspect of my day trading strategy using price channels is to look for FAILURES.  A failure is when price tests the lows of a bull price channel and then keeps moving lower, through the support levels at the lows.  When we see a price channel fail we always want to try and FADE THE BREAKOUT, which means if a bull price channel fails through the lows, I am going to buy at the next level of support below it, with the goal of bringing price back UP into the price channel.  The same is true for the opposite side.  If price is moving higher into the highs of a bear price channel and price keeps going through the highs, I will wait to sell at the next level of resistance overhead, with the goal of price falling back into the price channel below.