Trend channels in financial markets are some of the most basic forms of analysis.  They consist of lines drawn along the highs and lows of a charted security.  When parallel lines can be drawn that connect more than a few highs and lows, you have a trend channel!  It's even acceptable for the security to break outside the lines here and there if they are still capturing a majority of the bounces.  The goal of a trend channel is right in the name: we're trying to capture a general trend that speaks to the pace of improvement or deterioration in any given security.