Price Channel

Filed Under » , , ,
Dictionary Says

Definition of '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
Investopedia Says

Investopedia explains '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.

Articles Of Interest

  1.

    Channeling: Charting A Path To Success

    Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade.

  2. "Do The Right Thing" For Trade Breakouts

    Often in life, the right action is the hardest to take. Discover how to get on the right side of a trend.

  3. The Utility Of Trendlines

    Trendlines give an investor a good idea of the direction an investment might move in. Discover how to make them work for your portfolio.

  4. Forex: Should You Be Trading Trend Or Range?

    In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer.

  5. How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.

  6. Break Into Forex In 12 Steps

    Learn how to get started in forex trading.

  7. Choose A Fund With A Winning Manager

    We break down the key components of analyzing a fund manager's performance so you can find a winner.

  8. Analyzing The Best Retirement Plans And Investment Options

    Understanding the various retirement investments - from annuities to 401(k)s and everything in between - is crucial to reaching your retirement goals. Here, we examined many of the popular investments ...

  9. Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.

  10. Women: Invest In Your Financial Literacy

    Learning about money may seem intimidating, but it's not as hard as it looks.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center