There are three types of channels in Forex charting: ascending channel, descending channel, and horizontal channel.

In an ascending channel pattern, the peaks create higher highs and higher lows.

In a descending channel pattern, the peaks create lower highs and lower lows. And, in a horizontal channel pattern, the market is ranging.

Trendlines/Channels on MT4
  • Traders buy near the channel bottom and sell near the channel top.
  • Traders take short trades whenever the price touches the upper boundary and take long trades at the lower boundary.
  • You can also use the break out of a channel to find trades.
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