Most Useful Tool in Trading: Parallel Channel Chart Pattern

Types of Parallel Channels Chart Pattern

1. Ascending Channel

• Formed when both lines slope upward.
  
• Indicates a bullish trend with higher highs and higher lows.
  
• Best for selling opportunities near the higher trendline and resistance area.
  

2. Descending Channel

• Both lines slope downward.
  
• Represents a bearish trend with lower highs and lower lows.
  
• Ideal for buying near the lower trendline and support area.

3. Horizontal Channel

• Lines move sideways.
  
• Reflects a range-bound market, where the price oscillates between support and resistance.