Hi friends, Mates and Colleagues today i am sharing an easy to understand publication on Channel patterns commonly seen and used during charting and in technical analysis, hope it might be helpful for the new entrants in the world of Tradingview and technical analysis sharing below the description about channels, visuals and some insight about already shared on provided chart.
Ascending Channel-:
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern, Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.
Key factors-:
An ascending channel is used in technical analysis to show an uptrend in a security’s price.
It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively.
Descending Channel-:
What Is a Descending Channel?
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend. Officially, the space between the trendlines is the descending channel, which falls under the broad category of trend channels.
Key Factors-:
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend.
Traders who believe a security is likely to remain within its descending channel can initiate trades when the price fluctuates within its channel trendline boundaries.
Parallel Channel-:
A parallel channel pattern is a technical chart pattern that is often used in price analysis to capture a counter-trend move, It is one of the highly observable patterns and gives multiple trading opportunities to traders and A parallel channel pattern showcases a directional rally wobbling between two trendline barriers and is most likely to provide a counter-trend move.
Key Fcators-:
A price channel occurs when a security's price oscillates between two parallel lines that are either horizontal, ascending, or descending. The channel is formed when a security's price is buffeted by supply and demand.Traders can sell when the price approaches the price channel's upper trendline and buy when it tests the lower trendline.
Hope you like this post, Thanks for reading and giving your valuable time.
Best Regards- Amit
Ascending Channel-:
An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern, Technical analysts construct an ascending channel by drawing a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs.
Key factors-:
An ascending channel is used in technical analysis to show an uptrend in a security’s price.
It is formed from two positive sloping trend lines drawn above and below a price series depicting resistance and support levels, respectively.
Descending Channel-:
What Is a Descending Channel?
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend. Officially, the space between the trendlines is the descending channel, which falls under the broad category of trend channels.
Key Factors-:
A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend.
Traders who believe a security is likely to remain within its descending channel can initiate trades when the price fluctuates within its channel trendline boundaries.
Parallel Channel-:
A parallel channel pattern is a technical chart pattern that is often used in price analysis to capture a counter-trend move, It is one of the highly observable patterns and gives multiple trading opportunities to traders and A parallel channel pattern showcases a directional rally wobbling between two trendline barriers and is most likely to provide a counter-trend move.
Key Fcators-:
A price channel occurs when a security's price oscillates between two parallel lines that are either horizontal, ascending, or descending. The channel is formed when a security's price is buffeted by supply and demand.Traders can sell when the price approaches the price channel's upper trendline and buy when it tests the lower trendline.
Hope you like this post, Thanks for reading and giving your valuable time.
Best Regards- Amit