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

Further reading

  • John J. Murphy, Technical Analysis of the Financial Markets, New York Institute of Finance, 1999, ISBN 0-7352-0066-1

See also

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