Channel
A channel is formed when price moves between two parallel trend lines—one connecting highs (resistance) and one connecting lows (support). Price oscillates within this range.
Understanding the Concept
Channels are money-printing machines if you trade them right. You buy at the bottom trend line, sell at the top. Repeat. The beauty is predictability—price is telling you exactly where it wants to go. Most traders mess this up by trying to trade breakouts too early or holding positions when price hits the channel boundary. When Bitcoin's trading in a channel between $40k-$50k, don't buy at $49k hoping for $60k. Sell at $49k and buy back at $41k. Channels don't last forever. Eventually they break, and that's when trends accelerate. A break above the upper trend line is bullish. Break below the lower line is bearish.
Real-World Example
AVAX is channeling between $30-$40 for six weeks. You buy every time it hits $31, sell at $39. You've made 25% five times while everyone else is confused about the "lack of direction."
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