A price channel is a technical analysis tool that consists of two parallel lines drawn above and below a price chart, which help traders identify potential support and resistance levels. The upper line, called the resistance line, reflects a higher price level where selling pressure may occur, while the lower line, known as the support line, indicates a lower price level where buying pressure could emerge. Price channels can be ascending, descending, or horizontal, and they enable traders to determine the direction of price movement, spot potential breakouts, and make informed trading decisions based on price behavior within the channel.