TRADING CHANNELS
As a trend moves, it likes to move inside a trading channel. A trading channel is described as the market moving at an up or down angle inside two
trend lines that create somewhat of a channel. The trend lines of the trading
channels act as both resistance and support. If any are moving up—or a
downtrend breaks a trend line and it stays in place—the trading channel
will usually shift. In Figure 6-18, you see how a trading channel has shifted
and how the centre uptrend line at one time was support for the market and
with the shifting of the trading channel, now became resistance for the
market in the new trading channel.