Two roughly parallel trendlines containing price: one along the swing lows and one along the swing highs.
How traders use it: Traders note where in the channel price sits and watch for breaks of the channel as a change in pace or direction.
Common mistake: Assuming the opposite channel line is a guaranteed target.
Related: Trendline · Range (trading range)
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.