# Price channels

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A **price channel** is a pair of parallel [trend lines](/source/Trend_line_(technical_analysis)) that form a [chart pattern](/source/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](/source/Support_(technical_analysis)) or [resistance](/source/Resistance_(technical_analysis)), the trend is said to be broken and there is a "breakout".[2]

## References

1. Murphy, pages 80-85

1. Murphy, pages 400-401

## Further reading

- John J. Murphy, *Technical Analysis of the Financial Markets*, New York Institute of Finance, 1999, ISBN 0-7352-0066-1

## See also

- [Bollinger bands](/source/Bollinger_bands)
- [Control chart](/source/Control_chart)
- [Donchian channel](/source/Donchian_channel)
- [Richard Donchian](/source/Richard_Donchian)

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