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.
To identify a trend channel, look for major swing highs and lows in the price action. Then, in one of the trend channels mentioned above - ascending channel, descending channel, or ranging horizontal channel - draw a trend channel line. Buy the dips and sell the highs from here - the best formula for trading any market.

A trend channel is a graphical tool used in technical analysis to identify the direction and strength of a market trend. It consists of two parallel lines drawn on a price chart: one above the price, connecting highs (the resistance line), and one below the price, connecting lows (the support line). These lines create a channel within which the price tends to move.

Traders use trend channels to anticipate potential price movements and identify buying or selling opportunities. If the price approaches the lower boundary, it’s seen as a potential buying signal, while nearing the upper boundary can signal a selling opportunity. Trend channels can form during both upward (bullish) and downward (bearish) trends, helping traders assess market direction and volatility.