Following the theory of trends in a more advanced level, if we draw a trend line on another parallel line above it (or under it) we have something called "channel."
To create an ascending channel, simply draw a parallel line joining the maximum. In other words, the maxima and minima are connected by two parallel lines. Just as a descending trendline united by their maximum, minimum uniting with another line we have a downstream channel.
The usefulness of the channels is important, as always the price line should bounce between the lines, giving buy signals and sale.
Note that there are several types of figures that behave much like the channels that are the cones, flags and triangles that we will see later.
The following figure shows an example of a downstream channel is exceeded, generating a change in trend. As always, we recommend channels to draw the line chart.
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