Price channels

Trend channel

A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity.[1] Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".[2]

References

  1. Murphy, pages 80-85
  2. Murphy, pages 400-401

See also