Dictionary
Thesaurus
Encyclopedia
Translator
Web

ascending channel

 - 1 dictionary result
Financial Dictionary

Ascending Channel

An upward moving channel formed with two parallel, upward sloping trendlines. The upper trendline connects a stock's highs over a period, with each subsequent high price higher than the previous. Conversely, the lower trendline connects the stock's lows, with each subsequent low price higher than the previous.

Investopedia Commentary

As a general rule of thumb, the failure of any move within an established price channel to reach one side of the channel usually indicates that the trend is shifting and increases the likelihood that the other side of the channel will be broken. Thus, the clearing of the upper trendline could indicate an accelerating (upward) trend and the clearing of the lower trendline could indicate a decelerating (upward) trend.

Related Links

Trading Trend Or Range?
Identifying Trending & Range-Bound Currencies
Channeling: Charting A Path To Success
Speed Resistance Lines

See also: Channel, Descending Channel, Horizontal Channel, Profit-Taking, Range-Bound Trading, Resistance, Support, Trendline

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Search another word or see ascending channel on Thesaurus | Reference
FacebookTwitterFollow us: