DIVISLAB

A channel is the area between two parallel trendlines – upper trendline (resistance line), and, the lower trend line (support line).

What is a trendline? It’s a line drawn over pivot highs or under pivot lows to show the prevailing direction of price.

Upper trendline (resistance line) is drawn by connecting price highs, and, the lower trendline (support line) is drawn by connecting price lows.