Ascending Channel

Quick Summary of Ascending Channel

A chart pattern used by technical investment analysts that represents rising high and low prices of a security over a period. The price points create parallel lines, called the channel, that rise from left to right.

An ascending channel is a chart pattern made up of two ascending trend lines drawn above and below a price to represent resistance and support levels.

The ascending channel is also referred to as a “rising channel” and a “channel up.”
An ascending channel is a chart pattern made up of two ascending trend lines drawn above and below a price to represent resistance and support levels.

The ascending channel is also referred to as a “rising channel” and a “channel up.”

The lower line, which runs along the lows, is identified first: it defines the trend line. The upper line (the “channel line”) is identified as running parallel to the trendline and parallel to the highs.

A trend line supporting a series of higher lows and a diagonal resistance level connecting the higher highs define this bullish chart pattern.

Prices are expected to bounce off both upper and lower channel boundaries when in the channel; the more such reversals occur, the more reliable the pattern.
The lower line, which runs along the lows, is identified first: it defines the trend line. The upper line (the “channel line”) is identified as running parallel to the trendline and parallel to the highs.

A trend line supporting a series of higher lows and a diagonal resistance level connecting the higher highs define this bullish chart pattern.

Prices are expected to bounce off both upper and lower channel boundaries when in the channel; the more such reversals occur, the more reliable the pattern.

An ascending channel resembles a Rectangle pattern, but the difference is that an ascending channel slopes upward.

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