The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Chart Pattern Analysis

figUre 13.45 A Rounding Bottom Formation on the Daily Chart of Apple Inc.

Courtesy of Stockcharts.com

horizontal, rising, and falling Channels

Channels are characterized by price being contained between two parallel

lines, which may be flat, rising, or declining. It takes three inflection points to

construct a channel. There are two basic ways of constructing a channel. In a

rising channel, the conventional approach to constructing a channel is to first

figUre 13.46 A Rounding Top Formation on the 30‐Min Chart of EURUSD.

Source: MetaTrader 4