CGO.TO (Canadian) Trend Channel Swing TradeCogeco has been growing earning for the last several years (with the exception of 2016) and the growth is shown in the strong rising trend. Over the last year the price has been rising strong within a channel.
The recent pullback has pulled back toward the bottom of the channel. THat in itself that just alerts me that the price may be in a possible trade area. Now, the price is consolidating and will near to break back above the highs of that consolidation in order to signal a long trade and a likely rally back toward the top of the channel.
Stop Loss is placed a bit below the consolidation, if the trade triggers. An ATR Stop could also be used as a trailing stop loss, but because the price is moving in such a well-defined pattern, the trailing SL is not recommended in this case...just exit near the top of the channel.
