# Channel Lines

Channel lines are often drawn above and below the stock price or moving average of the stock price. There are several methods for determining where to draw the channel lines

# Channel Lines

On a chart study of a stock price, channel lines are often drawn above and below the stock price or moving average of the stock price. There are several methods for determining where to draw the channel lines and they are listed below.

## Channel Lines Interpretation

Channel lines are typically used to bound the upper and lower limits of price movement.  The channel lines indicate the current trend of the stock price. When the stock price breaks through one of the channel lines then it often signals a much larger movement in the same direction.

## Examples of Channel Lines

### Fibonacci Channel

Fibonacci Channel uses trend lines at Fibonacci intervals running diagonally

### Price Channel

Price Channel The upper band is the highest high during the previous n periods and the lower band is the lowest low during the previous n periods.

### Linear Regression Channels

Linear Regression Channels plot the best fit to a given set of data points and two parallel lines above and below the mean line