A price channel is a pair of parallel trend lines that form a

chart pattern A chart pattern or price pattern is a pattern within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which ...

for a stock or commodity. Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing

support Support may refer to: Arts, entertainment, and media * Supporting character Business and finance * Support (technical analysis) * Child support * Customer support * Income Support Construction * Support (structure), or lateral support, a ...

or resistance, the trend is said to be broken and there is a "breakout".Murphy, pages 400-401

References

* John J. Murphy, ''Technical Analysis of the Financial Markets'', New York Institute of Finance, 1999,

References

See also