Price Channel

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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.
Search results for

'Price Channel'

  • Range Bar Charts: A Different View Of The Markets

    http://www.investopedia.com/articles/trading/10/range-bar-charts-different-view.asp
    ... bar charts. Figure 3 illustrates a price channel drawn as two parallel
    down-trendlines on a 1 range bar chart of Google. We have ...

  • The Linear Regression Of Time and Price

    http://www.investopedia.com/articles/trading/09/linear-regression-time-price.asp
    ... regression line through the middle of our price points. This channel shows
    investors the current price trend and provides a mean value. ...

  • Timing Trades With The Commodity Channel Index

    http://www.investopedia.com/articles/trading/05/041805.asp
    ... developed by Donald Lambert and featured in his book "Commodities Channel Index:
    Tools ... The CCI does this by measuring the relation between price and a moving ...

  • Capture Profits Using Bands And Channels

    http://www.investopedia.com/articles/forex/06/BandsChannels.asp
    ... Donchian channels are price channel studies that are available on most charting
    packages and can be profitably applied by both novice and expert traders. ...

  • Four-Week Rule Boosts Winning Trades

    http://www.investopedia.com/articles/technical/02/052102.asp
    ... the time. The other trades are usually small losses, which occur while the
    market consolidates with choppy price action. (For more ...

  • Channeling: Charting A Path To Success

    http://www.investopedia.com/articles/trading/05/020905.asp
    ... time for the future. This strategy relies on the theory that channel price
    movements tend to be nearly equal in time and price. ...

  • "Do The Right Thing" For Trade Breakouts

    http://www.investopedia.com/articles/forex/08/CCI.asp
    ... right thing" employs a rarely used indicator in FX called the commodity channel
    index (CCI ... primary focus of CCI is to measure the deviation of the price of the ...

  • How To Build A Trading Indicator

    http://www.investopedia.com/articles/trading/04/120804.asp
    ... This mathematical function gives a clear price channel showing support and resistance
    levels Components of Hybrid Indicators Hybrid indicators use a ...

  • ADX: The Trend Strength Indicator

    http://www.investopedia.com/articles/trading/07/adx-trend-indicator.asp
    ... From low ADX conditions, price will eventually break out into a trend. In Figure
    3, price moves from a low ADX price channel to an uptrend with strong ADX. ...

  • Advanced Channeling Patterns: Wolfe Waves and Gartleys

    http://www.investopedia.com/articles/trading/05/040405.asp
    ... channel created by waves 1-2 and 3-4. This move is usually a false price breakout
    or channel breakdown, and is the best place to enter a stock long or short. ...

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