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A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity. Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support or resistance, the trend is said to be broken and there is a "breakout".
References
Murphy, pages 80-85
Murphy, pages 400-401
Further reading
John J. Murphy, Technical Analysis of the Financial Markets, New York Institute of Finance, 1999, ISBN0-7352-0066-1
