Using DJIA as an example, DJ has been in the uptrend along the two parallel lines since 2010. To draw a trend channel, use a parallel line tool and draw it such that the peak and trough of the index touches two or more peaks and two or more troughs.
As you can see from the chart, candlesticks that runs out of the trend channel is called exhaustion trends and usually after a few days of trading, it will be pulled back into its normal path.
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