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A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity. Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".Murphy, pages 400-401


References


Further reading

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


See also

* Bollinger bands *
Control chart Control charts are graphical plots used in production control to determine whether quality and manufacturing processes are being controlled under stable conditions. (ISO 7870-1) The hourly status is arranged on the graph, and the occurrence of ...
* Donchian channel *
Richard Donchian Richard Davoud Donchian (September 1905 – April 24, 1993) was an American commodities and futures trader, and a pioneer in the field of managed futures. The first publicly managed futures fund, Futures, Inc., was started by Donchian in ...
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