S&P 500 Price Channels and Elliott Wave

PRICE CHANNELS. The price action contained between two parallel lines in a trend.

The upper channel is set at the x-period high and the lower channel is set at the x-

period low. For a 20-day Price Channel, the upper channel would equal the 20-day high and the lower channel would equal the 20-day low. The dotted centerline is the midpoint between the two channel lines.