Channelling
Elliott Wave Theory glossary · Rule Of Alternation & Channeling Guidelines
Definition
The technique of drawing parallel trend lines through wave extremes to project targets for subsequent waves.
Channelling in plain English
Channelling is simply the drawing tool at the heart of much of this theory: you sketch two parallel trend lines that hug the high points and low points of the waves, then use that 'lane' to guess where the next wave will land. The idea is that price often travels inside a fairly straight corridor, so once you have both walls, you can project a target for the move that's still coming. It's like drawing the two edges of a road on a map to predict where a car will be a mile ahead. Most of the specific channels in Elliott Wave work (base channel, acceleration channel) are just particular ways of applying this one technique.
Learn these first
Practice Channelling
Related Elliott Wave Theory terms
Elliott Wave Theory practice questions · Elliott Wave Theory flashcards · Elliott Wave Theory study guide