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Channeling is one of the most reliable and accurate trading techniques that provide traders with precise entry and exit points as well as stop-losses and take-profit recommendations.

Channeling stock is a stock that moves up and down in repeated waves between two parallel lines. A lower line is called a support trendlin

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

e and an upper – a resistance trendline. A support trendline connects the series of lows and resistance connects the highs. The area between these two lines is referred to as the channel. We need at least 4 dots (2 lows and 2 highs) to draw the channel. The more times the price touches and rebounds from the support and r

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

sistance lines without penetration, the more significant and reliable the channel becomes.

There are three types of channels:

- An ascending or a rising channel makes consecutive higher highs and higher lows.
- A descending or a falling channel makes consecutive lower highs and lower lows.
- A horizon

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

al channel or a rectangle channel makes horizontal highs and lows.

Channeling offers several different efficient techniques for each type of channels. The most effective way of trading channel is to trade in the direction of the channel, going long at rising channel and shorting the falling channel. There are following

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

basic rules of channel trading:

- Buy (or cover short position) at support level
- sell (or take a short position) at resistance level

Channel is considered “trade-able” if it consists of at least two lows and two highs.

Following is the real life example of how you can profit using this simple techni

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ue. Let’s look at the chart of QQQQ for the period from the January 2004. We can easily locate two relative highs: 38.54 in January 2004 (1/20/2004) and 40.33 in December (12/15/2004) and two relative lows: 32.52in August 2004 (8/13/2004) and 34.98 in April 2005 (4/29/2005). Now we are able to draw two trend lines – a r

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

sistance line connecting two highs and a support line connecting two lows. These lines are near parallel giving as a perfect channel. Following our basic trading rules we can place a buy order when the price crosses the support trend line and sell when the price crosses the resistance trend line. This simple technique w

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ill provide you with the perfect trading entry/exit points: sell on January 6, 2006 at 42.5 and buy on May 23, 2006 at 38.65.

There are several ways to locate the channeling stocks. You can manually look through charts or utilize the pattern recognition services. Following links provide you with the list of channeling s

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ocks and ETFs.

http://www.thegreedytrader.com/Risingchannelingstock.aspx http://www.thegreedytrader.com/Fallingchannelingstock.aspx

To narrow your search you can use an advanced technical analysis filter to find a list of channeling stocks and ETFs with price testing the support or resistance line. For example, use th

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

following links to find a list of equities with rising channel pattern with price near support level and equities with falling channel near resistance.

http://www.thegreedytrader.com/RisingChannelSupport.aspx http://www.thegreedytrader.com/FallingChannelResistance.aspx

In addition to the basic trading rules a channel

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ng technique provides risk management in form of stop-loss rules:

1. If you enter a long position at a channel support level, set a moving stop-loss slightly below the support.
2. If you open a short position at a channel resistance level, set a moving stop-loss slightly above the resistance.

There are

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

additional trading rules and techniques that can help to improve performance and reduce the risk in case of the channel breakout, false breakout and channel narrowing.

Breakout appears when price breaks through the support or resistance line. You can tight protected stop-loss order to limit your risk. Some traders use

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

channel breakout as a trend reversal confirmation to open a new position in the direction of the new trend. To estimate the minimum breakout target some chartists suggest measuring the vertical distance from the trendline to the latest high/low and projecting it from the breakpoint into the direction of the breakout.

In

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

example with QQQQ above, if a trader opens a long position at channel support 38.65 on May 23, 2006 he immediately places a moving stop-loss order slightly below the support. When a price breaks the support line and a stop order is executed, a trader can also enter a short position to profit from the channel breakdown.

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

While a channel breakout terminates the current channel, the false breakout appears when a price just pierces the channel trendline and then moves back into the channel area. Usually a false breakout scares traders out of the stock and makes breakout traders enter the wrong position.

In opposite to the false breakout –

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

he channel narrowing appears when price drifts inside the channel area without touching the support or resistance trendlines. In this case the narrower channel could be considered or other techniques can be used to enhance the accuracy.

There are several techniques you can use in conjunction with channeling to help veri

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ying the channel strength, recognizing the price reversal and predicting breakouts.

1. Overbought/oversold momentum oscillators and bullish/bearish divergence are useful for providing early warning signals of trend reversal.

2. Candlestick patterns can be useful to confirm the price reversal or a channel breako

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ut.

3. Fibonacci technique is helpful in finding hidden channel cyclicity to spot an intermediate support/resistance within the channel area as well as for estimating the breakout target.

4. Analyzing chart trends in several different time frames can also help you accurately determine the price reversal

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

and a channel breakout.

5. Channeling trend often presents an Elliot waves structure. The sub waves in the direction of a major trend have a five-waves impulse structure while sub waves in the opposite direction have corrective three-wave zigzag structure. Using Elliot Wave analysis with channeling stocks can pr

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

vide a valuable trading strategy for an experienced trader.

Channeling works the best for short and medium-term trading with ETFs and medium volatility stocks. Channeling provides one of the most accurate and reliable market timing techniques especially when it is used in conjunction with other technical indicators

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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The financial services industry is moving at a great pace. Every day there is a new equation in the financial scenario. It might be market fluctuation, bull and bear markets, policy changes, new laws or regulations - all have an impact on the life of every citizen, particularly his personal finances.

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Your internet marketing business pivots around several key ingredients that make it hum. You can find many products out there that can be great cash-generators for you. Creating a unique product can be great, but it holds several pitfalls for the people using this approach. They have to go through a great deal of time and cash as they plan the product and its marketing. There is a completely different approach to this that I teach in my free on-line 5-day course. This is an approach that makes all the difference in what you do.

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