Terms used in Technical Analysis (TA): Horizontal Channel Pattern
đ A horizontal channel is a chart pattern formed from two parallel trend lines drawn above and below price representing resistance and support levels.
đ Horizontal channels, also known as horizontal trend channels, are chart patterns used in technical analysis.
đ Like ascending and descending channels, horizontal channels are formed by drawing trend lines for both high and low prices on a chart.
đ The difference between the other two is that a horizontal channel is characterized as having equal highs and lows.
đ In the case of a Horizontal Channel chart pattern, the stop loss should be placed at the previous low of the pattern.
đ The limitation for the target will be the previous resistance level which was formed before by the price action.