Glossary › channel

Trading glossary · structure

channel

Two lines side by side that price bounces between as it moves up, down or sideways.

The fuller meaning

A price path bounded by two roughly parallel trendlines, sloping up, down or sideways. Inside a flag, price drifts in a small channel against the prior move, and a close outside the channel is the break traders watch; wedges differ because their lines converge.

channel.

Related words

above-average volume · bounce · break of structure · breakaway gap · breakdown · breakout · broken level · choppy market · common gap · daily chart