Technical Analysis 12

Technical Analysis 12

Price channels

From Wikipedia, the free encyclopedia

Jump to: navigation, search

Trend channel

A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity.^[1] Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".^[2]

References[edit]

1. ^ Murphy, pages 80-85
2. ^ Murphy, pages 400-401

• John J. Murphy, Technical Analysis of the Financial Markets, New York Institute of Finance, 1999, ISBN 0-7352-0066-1

See also[edit]

• Bollinger bands
• Donchian channel
• Richard Donchian