THE REALITY OF USING CHANNELS AND BANDS

Channels and bands both have the same objective—to put a framework around price movement. They tell us when prices are unusually high or low. We can turn that into trading by buying at the low end of the channel, or when prices penetrate the bottom band, and selling at the high end. It works most of the time. It is best when prices aren’t moving too fast.
By expanding the channel or band width and slowing down the trendline used to form the bands, we can identify more extreme price moves and be more selective about our buy and sell signals. This helps eliminate some bad situations, but it reduces the number of trades and increases the time you are in a trade. We know by now that the longer you hold a trade, the larger the price swing you will endure.
There is no perfect channel or band. They all have the same basic problem. When price begin moving quickly higher, selling is a mistake; when prices drop sharply, buying is a mistake. All trading methods will have situations in which they lose.