What is a channel down pattern?

The Channel Down pattern is identified when there are two parallel lines, both moving down to the right across respective peaks (upper line) and bottoms (lower line). The upper line is identified first, as running along the lows: it defines the trendline.

What are the different types of channel patterns?

Depending on different geological factors such as weathering, erosion, depositional environment, and sediment type, different types of channel patterns can form. There are two main types of channels, bedrock and alluvial, which are present no matter the sub-classification.

What are ascending and descending channel patterns?

Both ascending and descending channels are primary channels followed by technical analysts. The trendlines in an ascending channel would be positive sloping at the resistant and support levels. Envelope channels are another popular channel formation that can incorporate both descending and ascending channel patterns.

What does breaking through the channel down mean?

Breakouts from the Channel Down can occur in both upward and downward directions, having exactly the opposite meanings. When the price breaks through the trendline, it might indicate an important, sometimes a severe change in trend. Breaking through the channel line, on the contrary, suggests acceleration of the existing trend.