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Trading Channel

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Dictionary Says

Definition of 'Trading Channel'

When charting the price of an asset, this is the space on the chart between an asset's support and resistance levels. The price of the asset will stay within the support and resistance levels until a breakout occurs.
Investopedia Says

Investopedia explains 'Trading Channel'

Range traders will buy an asset when its price is near the bottom of the trading channel and sell it when the price gets close to the top of the trading channel, making a profit on the price spread. Trading channels may be flat, ascending or descending.

Related Definitions

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    Support (Support Level)

    The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the ...
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  • Resistance (Resistance Level)

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  • Range

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