Channels
Channels are best described as two linear levels that run in parallel to one another.
They look like and sometime are referred to as ‘railway tracks’.
You can get rising, and falling channels.
A rising channel is made from linear higher highs, and higher lows.
The two lines running in parallel create the support, and resistance of the channel structure.
Like a ranging market, price bounces between these two lines and reversal signals can be picked off here.
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