What is a bullish channel?

A bullish channel is made up of two parallel bullish lines. The price progresses between these two parallel lines; the upper line is called the "resistance line"; the lower line is called the "support line". Each of these lines must have been touched at least twice to validate the pattern.

Is a bullish divergence happening in a falling Channel?

Not only do we see a bullish divergence, the divergence is happening in a falling channel. The only thing missing is a third confirmation of this bullish divergence. That confirmation can happen in 2 ways: 1: making a lower low on the... XC1! This is an example of Channel Down and W with Fail Pattern.

What does a downside breakout from a descending channel mean?

A downside breakout from a descending channel indicates a higher intensity of selling, and is a sell or short sell signal. This stock formed a descending channel within its uptrend. This was a narrow channel with a strong breakout on heavy volume, and the move carried the stock much higher in just a few trading days.

How to choose a long position after a bullish channel reversal?

Choose long positions (at the time of purchase) after rebounding of the bullish channel’s support line. - If you want to avoid false breaks as much as possible (false channel exits), it is advisable to draw the trend lines (resistance and support lines) based on the candlesticks’ low and high points (wicks) and not the candlestick bodies.