Channel Breakout FTSE 100 (UK100)

5 Mar 2022

A well defined bullish channel with many tops and bottoms respecting the channel (confirms that the market is using the channel). Now it has a bearish breakout with a close outside the lower channel (signaling a change in sentiment from overall bullish to bearish). Selling with stops at the breakout bar high. Target is 2:1. There are many scenarios that can happen with channel breakouts. I'll be watching to see if we get stopped out and will look to re-enter on some scenarios if it breaks the bottom of the breakout bar again. There is also a possibility of one final high made before it falls. I am prepared for all the scenarios since I have studied this type of entry.