Price Channel

The price action contained between two parallel lines in a trend. In a price channel, the lower line is the trendline drawn on pivot lows, and the upper line is the channel line drawn on pivot highs. The two lines of a channel represent support and resistance. In an uptrend, for instance, a trade might be entered at the support of the trendline (shown by the green arrows in the chart) and exited at resistance of the upper channel line (shown by the red arrows). Channels show trend direction for any time frame. Trend, or price channels, can be up, down or sideways.

Price Channel

All the forces of supply and demand are represented by price. The dominance of one force creates trend direction. Trend channels occur in all time frames and every asset class, such as futures, stocks, mutual funds, etc., and are useful for trading or investing.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Price Channel —    Used in technical analysis, the price channel provides buy and sell signals by indicating when a value moves outside set deviation limits. The channel chart consists of two bands either side of a simple moving average. Channels can also be… …   Financial and business terms

  • 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 …   Wikipedia

  • Price Busters TV — logo Launched 3 July 2006 Closed 22 February 2007 Owned by MK Promotions Website www.pricebusters.tv …   Wikipedia

  • Channel 4's Comedy Gala (2010) — Genre Stand up comedy Format Live stage recording Starring Jo Brand …   Wikipedia

  • Channel coordination — (or supply chain coordination) aims at improving supply chain performance by aligning the plans and the objectives of individual enterprises. It usually focuses on inventory management and ordering decisions in distributed inter company settings …   Wikipedia

  • Channel Tunnel — Map of the Channel Tunnel Overview Location English Channel (Strait of Dover) Coordinates Folkestone …   Wikipedia

  • Channel AKA — Launched 2003 Owned by Mushroom TV Ltd Audience share 0.0% (May 2011, BARB) …   Wikipedia

  • Channel Orange — Студийный альбом Фрэнк …   Википедия

  • Channel 71 — was removed from television use in 1983, but was formerly used by television stations in North America which broadcast on 812 818 MHz. In the United States, channels 70 83 served primarily as a translator band containing repeater transmitters to… …   Wikipedia

  • Channel 76 — has been removed from television use in 1983, but was formerly used by television stations in North America which broadcast on 842 848 MHz. In the United States, channels 70 83 were rarely used and served primarily as a translator band containing …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.