c.1300, "bed of running water," from O.Fr. chanel, from L. canalis "groove, channel, waterpipe" (see canal) Given a broader, figurative sense and a verbal meaning 1590s. Meaning "circuit for telegraph communication" (1848) probably led to that of "band of frequency for radio or TV signals" (1928).
In charting, a line connecting a series of high points accompanied by a parallel line connecting a series of low points. The two parallel lines compose the channel in which the variable (for example, a stock price) has been moving and is expected to continue moving. An ascending channel indicates a bullish trend, while a descending channel represents a bearish trend. Breaking downward through an ascending series of low prices or upward through a descending series of high prices indicates a likely change in trend.
Main Entry: chan·nel Pronunciation: 'chan-&l Function: noun 1: a usually tubular enclosed passage 2 a: apassage created in a selectively permeable membrane by a conformational change in membrane proteins b: a protein or cluster of proteins that functions as a channel —see CALCIUM CHANNEL BLOCKER
[cheyn-weyl, chan-l] 
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