Trend Channel

A trend channel is an ascending, descending or horizonal channel used for analyzing the direction of the price move in the market and helping traders determine the entry point or exit point of a trade.

A trend channel consist of one upper trendline of resistance and one lower trendline of support and prices move in between. prices break above the upper resistance trendline, a buy signal is generated; if prices break below the lower support trendline, a sell signal is generated.