Channels Fx Trading Indicators

Channels are one of the most popular technical indicators used by forex traders. A channel is simply a trendline that is drawn above and below price action, creating a trading range. Channels can be used to identify both continuation patterns and reversal patterns. There are two types of channels: upward-sloping channels and downward-sloping channels. Upward-sloping channels occur when prices are in an uptrend and continue to make higher highs and higher lows. Downward-sloping channels occur when prices are in a downtrend and continue to make lower highs and lower lows.