Parallel◐ Heuristic
◆ The PatternTwo parallel trendlines containing price
A Channel consists of two parallel trendlines between which price oscillates. Ascending channels slope up (bullish), descending channels slope down (bearish), and horizontal channels are ranges. Price bouncing off both lines confirms the channel.
Trade the channel interior · Breakout signals new move
Draw the primary trendline first (connecting 3+ points), then create a parallel line through the opposite extreme.
// Channel types — ascending, descending, horizontal
Key insight: Channels provide both direction and range — buy the lower line, sell the upper line, and exit when price breaks through either boundary.
Pattern bridge: Parallel trendlines bounding price is a visual confidence interval — price stays within 2σ most of the time. In ML, batch normalization keeps activations channeled.