1. Is this the right way to do this?
2. Does anybody use these?
3. Are these a good stock indicator?
Close, but you want to the points to connect to major turning points.
You got the middle one right, but you want the bottom and top ones connecting to some important highs and lows too.
Try this and take another screen shot for us.
Connect the middle one to the March 28 high.
Connect the bottom one to the Apr 13th low.
Connect the top one to the Apr 27th high.
This is going to give you a much bigger channel that might not be that useful to you if you are shorter term trader, but you can see how it respects the support and resistance levels of that fork.
There we go , you can see how the channel lines are being respected, the support and resistance for May and June could have been plotted ahead of time.
Your first attempt also worked out well in that the resistance was at the right place, but typically I do like floating pivots like that, but as you can see, they do work.