# Horizontal Channel

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A **horizontal channel** is a chart pattern formed by drawing two parallel trendlines above and below the price.&#x20;

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.