Learn the basics of technical analysis & chart patterns.
In technical analysis, trading channels are another tool by which to determine the exact right moment to open a trade. Mainly, they appear on the chart due to the Trend lines.
Mostly, it is an area between two parallel lines within an uptrend/downtrend.
There are three types of channels.
Ascending channel is determined by the higher highs and higher lows.
The downward channel is determined by lower highs and lower lows.
Side channel: each next maximum and minimum is located approximately at the level of the previous one.