All you wanted to know about channel patterns

Moving averages have a great role in the channel breakout

A channel is a combination of trendlines that helps traders identify the price move and even assists in determining the target levels to optimise profitability. It is a line drawn on respective highs or lows of trendlines to exhibit the price movement. Over the years, trendlines have facilitated in showing the support and resistance levels to build a profitable trading model.

Types

-- Ascending Channel is a formation pictured as an upward sloping trendline. This pattern is quite familiar as “Rising channel Pattern” which demonstrates the gradual rise of stock prices with healthy corrective moves in Higher high, higher low