Channeling, it's like you think. We're not talking about summoning any kind of spirits, we're talking about price channels. Channels are derived in a lot of different ways, one of which is Donchian Channels. They were created by a man named, you guessed it, Donchian and are based on the highest high and the lowest low of a set period. They have an advantage over other forms because they are based on a true range of prices and not a standard deviation or percent. However, they also have a disadvantage. Because they are based on the highest high, you don't get crossover signals that often. When you do they are pretty strong though, the best being trend following. Basically, when the channels begin to point up or down, in line with the trend, it is a signal to enter.

You can read the full review here, Donchian Channels, Surfing To Profits