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Ascending Channel

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Ascending Channel
In technical analysis, a channel that trends upward. A price channel is the range between the support and resistance levels on a chart. In other words, an ascending channel is marked by higher highs and higher lows; this is a bullish signal that is likely to continue until the lows drop below the higher lows previously documented. See also: Descending Channel.


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Taking a trade in the direction of the trend on the Daily chart off of the support line of an ascending channel is a higher probability entry.
To create an ascending channel, you just draw a line that is parallel and that is the same angle as an up trend line, and then simply position the line to where it touches the most recent resistance level.
The area surrounding 20 is the site of the upper rail of an ascending channel, the 50-day moving average and chart support.
 
 
 
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