Investopedia

Continue to Site »

Trading Channel

Filed Under » ,
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.

Articles Of Interest

  1.

    Support And Resistance Basics

    Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy.

  2. 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.

  3. Uncover Forex Profits With The Turn Trade

    Pick tops and bottoms while still trading within the overall framework of a trend.

  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. The Most Volatile Stocks With Volume For Short-Term Traders

    Looking for big daily moves with volume that makes it easy to get in and out. Here are four of the most consistently volatile stocks, with significant volume.

  6. What Do All-Time-Highs Indicate For These Stocks Going Forward?

    Some well-known names are making all-time highs, and exhibiting very strong uptrends. The question is where to get in?

  7. January 18, 2013 Market Summary

    The major U.S. indexes were largely mixed this week amid bullish bank earnings and bearish concerns about the debt ceiling.

  8. 4 Stocks Completing Double Bottoms

    When a stock completes a double bottom, it usually means the downtrodden is looking up.

  9. Commodity ETF Outlook For 2013

    We take a look at where gold, silver, oil, natural gas and their associated ETFs are heading in 2013.

  10. December 21, 2012 Market Summary

    The major U.S. indexes moved lower this week, primarily due to concerns about the fiscal cliff, which remained unsolved as of mid-day Friday. If these concerns are not resolved, traders could ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center