The term price channel refers to a signal that appears on a chart when a security's price becomes bounded between two parallel lines. The price channel may be termed horizontal, ascending, or descending depending on the direction of the trend.
Price channels are often used by traders who practice the art of technical analysis to gauge the momentum and direction of a security's price action and to identify trading signals.
The dominance of one force determines the price channel’s trending direction. We will share more about uptrend channel and downtrend channel in next session.