Sunday, June 23, 2024

Trend Channel

A A Trend Channel is a set of parallel trend lines defined by the highs and lows of an asset’s price action.

A

trend channel, sometimes called a price channel, occurs when price moves between two parallel trend lines .

Trend channels can be drawn on the chart to help see uptrends and downtrends.

Trend Channel Example

Trend channels can turn into triangles

A trend channel forms a descending triangle when the slopes of the trend line and trend channel line transition from parallel to convergent.

A trend channel forms an ascending triangle when the slopes of the trend line and trend channel line transition from parallel to divergent.

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