Price channels
Investopedia Financial Dictionary:
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Price Channel
The price action contained between two parallel lines in a trend. In a price channel, the lower line is the trendline drawn on pivot lows, and the upper line is the channel line drawn on pivot highs. The two lines of a channel represent support and resistance. In an uptrend, for instance, a trade might be entered at the support of the trendline (shown by the green arrows in the chart) and exited at resistance of the upper channel line (shown by the red arrows). Channels show trend direction for any time frame. Trend, or price channels, can be up, down or sideways. 
Investopedia Says:
All the forces of supply and demand are represented by price. The dominance of one force creates trend direction. Trend channels occur in all time frames and every asset class, such as futures, stocks, mutual funds, etc., and are useful for trading or investing.
Related Links:
Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade. Channeling: Charting A Path To Success
In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer. Forex: Should You Be Trading Trend Or Range?
This trader's tool can help you gauge an asset's direction and profit from it! Track Stock Prices With Trendlines
This "do the right thing" setup will help put you on the right side of a trade. Channel Breakouts With The CCI
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Price channels
Wikipedia on Answers.com:
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Price channels
A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity.[1] Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".[2]
References
- John J. Murphy, Technical Analysis of the Financial Markets, New York Institute of Finance, 1999, ISBN 0-7352-0066-1
External links
- How To Trade the Channel Chart Pattern at StockChartPatterns.org
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