A Channel Up pattern shows a clearly defined uptrend and describes the behavior of the price contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. This pattern is created via a lower trendline connecting the swing lows (1, 3, 5), and an upper channel line that joins the swing highs (2, 4, 6).
A breakout above a Channel Up’s resistance line points to a continuation of the growth momentum, while a breakdown below the pattern’s support line can demonstrate a possible trend change.
Traders could go long on the security when the price reaches the support line and exit when the price reaches the resistance line. When it breaks above the resistance line, traders can choose to buy the security. As with all the cases above, traders should look for other signs to confirm the pattern before choosing to short the security when the price breaks below the support line.
Click here to view the current news with the use of Patterns
The difference between a Channel Up and a Channel Down pattern is the trend they describe: the former characterizes an Uptrend while the latter describes a Downtrend.
Federal debt is the money owed by the government. The primary source of this debt is Treasury Bonds
Explore the concept of currency arbitrage, a forex strategy that allows traders to profit from disparities in currency quotes. Learn about two-currency and three-currency arbitrage, understand the associated risks such as execution risk and market volatility, and delve into real-world examples.
Discover the significance of account history in finance. Learn how it helps track financial activities, make informed decisions, and comply with regulations. Explore its role in investment accounts, corporate clients, and security measures.
Learn about the 10-K filing and its significance in finance. Discover how this annual report provides crucial insights into a company's financial health, operations, risk factors, and more. Investors rely on it for informed decisions, while companies gain valuable self-assessment and transparency.
Discover the benefits of the SIMPLE IRA retirement plan for employees and employers. Learn about contribution limits, matching options, and tax advantages. Strategize for optimal savings growth with personal deferrals and employer contributions. Consult a retirement specialist for tailored advice.
Explore the power of the Relative Strength Index (RSI) in day trading. Learn how to combine RSI with other technical indicators for profitable trades, understand the role of AI in RSI day trading, and discover strategies for effective application of RSI
Discover the impact of the Federal Reserve's recent rate hike on your savings. Understand how high-yield accounts, money market funds, and CDs might benefit, and what this means for borrowers. Dive into the Fed's decisions and how they shape the financial landscape for everyday savers and investors.
Explore the mechanics of Ethereum smart contracts, their real-world implications, and future potential. Learn about their role in decentralized applications, challenges, and the upcoming Ethereum 2.0 upgrade. Understand how these digital agreements are revolutionizing traditional contractual norms.
Dive into the world of Basic EPS, a cornerstone in financial analysis. Discover its role in valuation, dividend distribution, and benchmarking. Understand its nuances, implications, and limitations to make informed investment decisions in the dynamic financial landscape
Explore Modern Monetary Theory (MMT), a groundbreaking approach challenging traditional beliefs about government finance and money creation. Learn about its origins, key principles, criticisms, and potential impacts on fiscal policy. Discover a new perspective on economics.