Trending stocks and markets move in sawtooth patterns, either up, down, or sideways. A Trading Channel is drawn by making a line represented by the higher highs and a line representing the higher lows. Generally is the stock has tested this channel on numerous occasions, it will bounce off the channel and go down or up within that channel. If it breaches the channel to upside, it can mean an acclerated rise or steeper ascent and further, can mean that the top of the breached channel is actually support. Bollinger Bands represent two standard deviations from a given moving average, say the 50 day moving average, and will generally define the trading bands for trending markets.
Stocks tend to bounce off the bands and trade up to or down the moving average.
Warning No technical signal should be simplistically followed. You should look at a variety of signals and make possible trades pass a series of tests. If you do not do a trade, don't fret. The information presented in this site is for your informational, educational and entertainment purposes. Investing involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.