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