#Knowledge_baseđ
Price often doesn't rise or fall endlessly â it moves within ranges that can be noticed and used in trading.
One of the simplest and most popular patterns is movement within a channel.
âď¸ Channel (trading channel) â is a price range bounded by two parallel lines:
Upper boundary â resistance level
Lower boundary â support level
đ§Š Types of channels:
Ascending channel â price rises, but bounces off the upper and lower boundaries.
Descending channel â price falls, but does not break through the boundaries.
Horizontal channel â sideways movement without a clear trend.
đ Built in the same way as a trend, at least from two points
Watch the tutorial on our YouTube channel
đIn our case, for Bitcoin
$BTC , a descending channel in the range from 111k to 99k
đŻ Note:
Channels work on all timeframes: from minutes to weeks.
Use them in conjunction with our RSI indicator of all timeframes: add and use.
Do not blindly trade from the boundaries of resistance and support â the market can break any pattern at any moment.
đ Save this post â you will come back to it when the market starts moving "in a corridor" again).
#study #analysis