A trend channel, also known as a price channel, is a set of parallel trend lines defined by an asset's price action's highs and lows. These price channels typically run parallel to each other and are extremely useful to Forex traders because they allow them to see uptrends and downtrends.

A trend channel is a technical analysis tool used to identify and follow the direction of an asset's price movement. It consists of two parallel lines: the upper line (resistance) connects higher highs, and the lower line (support) connects higher lows in an uptrend, or lower lows in a downtrend. Traders use trend channels to identify potential buy or sell opportunities, expecting prices to bounce between these lines. When the price breaks out of the channel, it can signal a trend reversal or acceleration. Trend channels help traders visualize the current trend, set stop-loss levels, and determine entry and exit points, enhancing their ability to make informed trading decisions.