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Nik Halik will teach you all about channels. Did you know that most stocks channel much of the time. All you need to do is find the channel, then decide where the stock price currently is within that channel – and trade accordingly.
Channels can be uptrending, downtrending, or going sideways. Sometimes the stock may break through the channel, as in the example of Boral below, but eventually it is drawn back into it. (more below the chart)
Channels don’t last forever though. Nik Halik shows you that eventually, the channel will be broken and probably a new one formed. But until that happens, a channel can last for years and in the meantime, provide you with nice profits.
There are long-term channels, as in this AMP chart below. We identify the longer term channel using the “Weekly” chart. Having done this, we can now go to our “daily” chart and see where our stock lies within this larger channel. Is it near the top or the bottom? Has it bounced off the top and now heading toward the bottom, or vice-versa?
We can see (writing this Sept. 3, 2007) from the AMP chart above, that the overall trend is still upwards, that the stock has bounced off the bottom of the channel and moved rapidly upwards. This is more likely, as the overall (weekly) trend is up. It is now pressing against a resistance line and if it breaks through decisively, is likely to continue north until it reaches the top of the weekly channel line again. “Decisively” usually means that the stock breaches the resistance line and then confirms its direction with another “low” (retracement) either on or above that line. Anything less than that can be a “false break”.
Armed with the above information, we are now in a position to purchase, in this case, call options at the right time. Why spend thousands on buying the stock when you control just as much, if not more, and risk far lesss, by purchasing options?
Here’s another example of a channeling stock.
Wouldn’t you just love to have gone short on the day coloured yellow! 
The above is but a small fraction of the little gems that Nik Halik will show you in his fascinating course, Mastery of Stock Market Intelligence. If you visit Wealth Super Highway and provide your email address, Nik will send you more examples in video form, of the “footprints” the stock market leaves behind.
