Horizontal Channel

A horizontal channel is a chart pattern formed by drawing two parallel trendlines above and below the price.

1. Pattern Description:

   • The upper trendline defines the resistance level.

   • The lower trendline acts as support.

   • Unlike ascending or descending channels, a horizontal channel has equal highs and lows.

2. Horizontal Channel as Support and Resistance:

   • When the price is between support and resistance, it doesn’t signal a specific future price direction.

   • Breakouts:

     • A break above the upper resistance trendline suggests a bullish trend.

     • A break below the lower support trendline indicates a bearish trend.