Technical analysis

Channel Trading Forex

In technical analysis, trading channels are another tool by which to determine the exact right moment to open a trade. Mainly, they appear on the chart due to the Trend lines.
Mostly, it is an area between two parallel lines within an uptrend/downtrend.

Ascending channel

There are three types of channels.

Ascending channel is determined by the higher highs and higher lows.

Downward channel

The downward channel is determined by lower highs and lower lows.

Side channel

Side channel: each next maximum and minimum is located approximately at the level of the previous one.