What is a "Trending Channel"?

A trending channel is an important tool in technical analysis used to identify the price direction in financial markets. It consists of two parallel trend levels: an upper one and a lower one, through which the price chart moves. The channel shows the range in which the price is moving and helps traders identify potential entry and exit points. It is essential to remember that a trending channel can be used for both upward and downward trends, making it a versatile tool for market analysis.