Channel Pattern

A Channel Pattern is a technical chart pattern in which the price moves between two parallel trendlines that act as dynamic support and resistance. An Ascending Channel indicates a bullish trend with higher highs and higher lows, while a Descending Channel reflects a bearish trend with lower highs and lower lows. A Horizontal Channel represents a sideways market where price oscillates within a defined range. Traders often buy near the lower boundary and sell near the upper boundary, while a strong breakout above or below the channel with increased volume may signal the beginning of a new trend.