Trading Channel

Trading Channel

In technical analysis, the range of prices between a security's resistance level and support level. A resistance level is the price below which a given security does not normally fall, and a support level is the price above which it does not usually rise. A trading channel is particularly useful to technical analysts as it enables them to recommend buying the security when it is toward the bottom and selling when it is near the top. A trading channel may be steady, or it may be gradually rising or falling.