Channel line - line parallel to the trend line and constructed in such a way that under the current trend of all prices have been concluded between the lines. The channel formed by parallel lines is the optimum range of trade changes.
In this case, the lower bound forms a support line, and the upper - resistance line. The distance between these levels is usually called trading range or channel trading range. How it works You can see an example of this site http://www.freerobot2010.com