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General TradingA
Ascending Channel
A bullish chart pattern formed by two parallel upward-sloping trendlines that contain price action. The lower line acts as support and the upper line as resistance, with price making higher highs and higher lows. Traders often buy near the lower trendline and take profits near the upper trendline, while a break below the channel can signal a trend reversal.
Example
“The stock had been trading within an ascending channel for three months before finally breaking above the upper trendline on heavy volume.”