| Horizontal Channel | |
 Two parallel, horizontal trendlines acting as very strong support and resistance. The upper trendline connects a stock's highs over a period of time, with each subsequent high price equal to the previous. Similarly, the lower trendline connects the stock's lows, with each subsequent low equal to the previous. |
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 Once the price of a stock breaks out of the upper or lower part of the channel, it is usually followed by a large price movement in the direction of a break. Once through the upper area of resistance, this level will now become support. Horizontal channels are mainly used in range-bound trading, where the investor will buy the stock at the bottom of the channel and sell it near the top. |
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 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. Identifying Trending & Range-Bound Currencies - Gain a trading edge by learning how macroeconomic forces play out differently for various pairs. 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. Speed Resistance Lines - Discover how to measure the line of an uptrend or a downtrend. |
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