A parallel channel is a continuation pattern that slopes up or down and is bound by an upper and lower trend line.
The upper trend line marks resistance and the lower trend line marks support.
Channel Line: The line drawn parallel to the main trend line is called the channel line.
A key concept of technical analysis is that when a resistance or support level is broken, its role is reversed.
If the price falls below a support level, that level will become resistance.
The upper trend line marks resistance and the lower trend line marks support.
Channel Line: The line drawn parallel to the main trend line is called the channel line.
A key concept of technical analysis is that when a resistance or support level is broken, its role is reversed.
If the price falls below a support level, that level will become resistance.