Horizontal Channel

Horizontal Channel is a chart pattern with a price range that is horizontal or sideways for a period of time. A Horizontal Channel happens in periods of price consolidation and often occurs after a run-up in price.

Horizontal Channel

Horizontal Channel is a chart pattern with a price range that is horizontal or sideways for a period of time.

 


Horizontal Channel Identification

Two trend lines are drawn on the price chart, one connecting pivot point highs and the second connecting pivot point lows.  The two trend lines are horizontal and show price containment between the upper line of resistance and lower line of support.



Horizontal Channel Interpretation

A Horizontal Channel happens in periods of price consolidation and often occurs after a run-up in price.  This typically represents a continuation pattern where the price will continue to appreciate once a breakout occurs..

Related Terms