Tag: channel line

A channel line (or price channel) is a technical analysis tool used to show the direction of a market trend and the range where price tends to move.

How Traders Use Channel Lines

• Buy near support, sell near resistance
• Identify trend strength
• Spot breakouts (price breaks outside the channel)
• Combine with:
  • Candlestick patterns
  • RSI / MACD
  • Volume

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Key Notes

⚠️ Channel lines are dynamic, not fixed
⚠️ False breakouts can happen
✅ Best used with confirmation tools