Price Channel
Definition
Parallel trendlines drawn above (resistance) and below (support) price action to define the range of a trend. Price oscillates within the channel until a breakout occurs.
Example
Price bouncing within a rising channel signals uptrend continuation; a close below the lower channel line warns of a breakdown.
Related Terms
Frequently Asked Question
What is a Price Channel?
A price channel is formed by two parallel trendlines. Traders buy at the lower channel line in an uptrend and sell at the upper line. A channel breakout often signals a significant trend change.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.