Trend channels are one of those chart formations that traders love. They provide security and ample opportunity to profit from price swings in both directions, while still calmly continuing a larger up and down move (unless we have a horizontal channel that is).

But are there any risks when trading a channel and how exactly do we define it? Trading expert David Jones once again joins us at Trading 212 for a guided tour of trend channels. From the number of tops and bottoms needed to confirm it, to the size of moves in both direction, he goes into the nuts and bolts that make up this setup and as always demonstrates it on real charts.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.