channel

Channel

1. The system of intermediaries between the producers, suppliers, consumers, etcetera, for the movement of a good or service.

2. The technical range between support and resistance levels that a stock price has traded in for a specific period of time.

Notes:

1) There are different types and flavors of channels. Examples are sale channels, distribution channels, Internet channels, and so forth.

2) A breakout of a technical channel is seen as a bullish (on an upward breakout) or bearish signal (on a downward breakout).

See also: Channel Stuffing, Resistance, Support, Technical Analysis

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channel

In charting, a line connecting a series of high points accompanied by a parallel line connecting a series of low points. The two parallel lines compose the channel in which the variable (for example, a stock price) has been moving and is expected to continue moving. An ascending channel indicates a bullish trend, while a descending channel represents a bearish trend. Breaking downward through an ascending series of low prices or upward through a descending series of high prices indicates a likely change in trend.