Channels are kind of lines that are drawn on a chart to show the range of the trend over a certain amount of time. They are very easy to understand and reproduce. By looking at the chart all you need to do is to draw a line connecting the relative highs of trading prices, and another line that is below it connecting the relative bottoms of trading prices. The thing you`ve drawn produces a visualization of the trading range over the time period in question, for example a week.
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