Are you tired of manual crypto trading and constant market monitoring? If so, this article is for you. With the help of trading automation software, you can achieve better results with less effort. But is it possible to execute automated trading orders by targeting pricing ranges for cryptocurrencies? Yes, this is quite possible, and a horizontal channel trading scenario can be a useful tool for achieving that.

Let’s dive into the definition of horizontal channel trading and a platform where you can find it. After reading this article, you will be able to target better returns from your cryptocurrency trades using horizontal channels.

Definition of Horizontal Channel Trading

A horizontal channel, also known as the price range, is a trendline that creates a horizontal connection between the pivot highs and pivot lows of a crypto price. It produces a flat trend line during a certain trading period. By keeping an eye on the horizontal channels, traders can easily trace the resistance and support channels of the asset price and recognize possible future price breakouts. Since it only creates a sideways line, it is also called a sideways trend.

Other Types of Channel Trading

  • Ascending Channel: This is a trading channel that shows an upward trend with the resistance and support lines sloping upwards. It has other names, like bullish price channel and rising channel. Traders can easily identify this channel and take long positions within the trendline. But the positions should be taken within the parallel trend lines to minimize risk.
  • Descending Channel: A descending channel is another trendline where the parallel lines are showing a downward trend. The other name of the channel is the bearish price channel trading pattern. In this pattern, a connection can be drawn using the lower highs and lower lows of the digital asset. The market shows a descending channel as long as the assets follow the downward trend. When the prices break the descending resistance line it starts a new channel or pattern for the asset. 

Creating a Horizontal Channel Trading Scenario with Obolon9

Horizontal channel trading is used to improve cryptocurrency trading. So, the next step is to find an automated trading platform to create the horizontal channel trading scenario.

What Is the Obolon9 Platform?

Obolon9 is automated software with script-based tools and crypto trading strategies designed to increase trading accuracy. At the same time, it has multiple trading scenarios to reduce the chances of failure.

Currently, you can avail of a free 30-day plan for basic usage if you subscribe to this platform. With this subscription plan, you can easily create scripts and alerts to make cryptocurrency trading easier and more profitable. Also, you have the option to choose from plans like monthly (GBP 9.99) and annual (GBP 99.9) with monthly payments.

How Obolon9 Horizontal Channel Trading Scenarios Work

Creating a horizontal channel trading scenario at Obolon9 is very easy. You have to follow a step-by-step process to create the horizontal channel strategy. 

Obolon9 will target the following four prices to create the horizontal channel strategy:

  1. High the price
  2. Low the price
  3. Low stop-loss 
  4. High stop-loss

Once the parameters are set, the scenario will automatically buy assets when the price is low and sell assets when the price is high. This process works continuously. Fortunately, you don’t need to spend hours monitoring manually since you will get automated alerts for price changes. The software can easily send alerts to your smartphone or inbox to make the experience better. 

But what happens when the prices cross your high stop-loss or low stop-loss? Here’s what happens:

  • If the high stop-loss is crossed, then the quote currency is spent by the market price. Here, the quoted currency is USD if you are trading BTC-USD.
  • When the price breaks the low stop-loss, the base currency is sold automatically. The base currency is ETH if you are trading ETH-BTC. However, the volume of the base currency should be positive, or negative if you want to sell.

Discovering the New Obolon9 Horizontal Channel Trading Scenario 

After finding a reliable platform to start your horizontal channel trading, it’s time to discover how to use it in easy steps: 

  • At first, Obolon9 will ask you to create a name for the horizontal channel scenario.
  • Select the script “Horizontal channel trading” from the dropdown menu.
  • Find the market or trading platform and your desired currency pair.
  • Select the parameters from the Market API keys “Only alert mode (w/o trading).”
  • Enter your trading volume. 
  • Create instructions for other parameters, like buy price, sell price, high stop-loss price, and low stop-loss price.
  • Finish with the “Save and Start” button.

Wrap Up

To conclude, a horizontal channel is a great tool to find new investment targets and make profits using trading trendlines. It helps crypto traders identify trader sentiment, past ranges of trading, and profit possibility in the next trading period. So, having a dedicated tool to automate and take advantage of the horizontal channel trading scenario can be helpful to traders.

The Obolon9 platform is trading automation software to make horizontal channel trading easy. Using Obolon9, you just need to create parameters for the scenario. The software will automatically follow the parameters for the best use of the scenario. You can also use the Start Free Trial option after the registration process. Just set the simple settings and you can start using the professional trading tool.