Channels are very common patterns you can find in the stock market. They are simply two trendlines running parallel with stock price bouncing back and forth between them. There are downward channels, upward channels and horizontal channels. They are easy and profitable to play especially when you can line up another technical indicator with them to verify an entry. As with all patterns there will come a point when they fail to hold price and the channel breaks down - nothing lasts forever but while the channel is in motion, it is a profitable place to be.