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intermediatePremiumTechnical Analysis

Price Channels

A channel is price moving between two parallel trendlines — a trend with guard rails. This article explains ascending, descending and horizontal channels, how to draw them from two touchpoints plus a parallel line, the two ways traders use them (trading the bounces within, and trading the breakout beyond), why the breakout direction and channel slope matter, and the discipline of not forcing parallel lines that aren't there.

12 min readPublished 26 June 2026

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TrendlinesSupportResistance

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Key terms

ATRBollinger BandsBreakoutCandlestickDivergenceDojiFibonacci RetracementGap

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Rectangles & Trading Ranges

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intermediateTechnical AnalysisPremium

Breakouts

A breakout is the moment price moves decisively beyond a support or resistance area or a trendline, resolving a period of balance. This article explains what counts as a breakout (a close through the zone, not a passing wick), the role of volume and the retest, why broken levels flip role by polarity, and — crucially — the false breakout: why price so often pokes through a level and snaps straight back, and why a breakout is an event to observe rather than an instruction to act.

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