Trading Channel

What Does Trading Channel Mean?
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 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 Terms

Breakout
Channel
Chartist
Range
Range-Bound Trading
Resistance
Spread
Support
Technical Analysis
Trading Range
More Related Terms

Related Links

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Support & Resistance Basics - Understanding this key concept can drastically improve your short-term investing strategy.
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