#Knowledge_baseš
Price often doesn't rise or fall endlessly ā 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.
āļø Channel (trading channel) ā is a price range bounded by two parallel lines:
Upper boundary ā resistance level
Lower boundary ā support level
š§© Types of channels:
Ascending channel ā price rises, but bounces off the upper and lower boundaries.
Descending channel ā price falls, but does not break through the boundaries.
Horizontal channel ā sideways movement without a clear trend.
š Built in the same way as a trend, at least from two points
Watch the tutorial on our YouTube channel
šIn our case, for Bitcoin
$BTC , a descending channel in the range from 111k to 99k
šÆ 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 ā the market can break any pattern at any moment.
š Save this post ā you will come back to it when the market starts moving "in a corridor" again).
#study #analysis