Channel Pattern Screener — Support & Resistance Breakout Detection
Detects stocks trading in well-defined channels between parallel support and resistance lines. Price must have touched both the channel floor and ceiling at least 3 times. Filters for market cap above $300M, average volume above 500K, and excludes biotech penny stocks.
Entry: Channel Floor Bounce
When price touches the channel bottom and shows a bullish reversal candle (hammer, engulfing, or doji), enter long. Target is the channel ceiling. Stop loss sits just below the channel floor.
Buy BottomTarget TopReversal Candles
Exit: Channel Ceiling or Breakout
Take profits at the channel resistance level. If price breaks above the ceiling on above-average volume, the stock is transitioning to an uptrend — hold with a trailing ATR stop instead of selling at resistance.
Profit TargetBreakout DetectionTrailing Stop
Quality Filters
Only stocks with market cap >$300M and average daily volume >500K are included. Biotech and penny stocks are excluded to avoid low-liquidity traps. This keeps the screener focused on tradable, liquid names.
>$300M Cap>500K VolumeNo BiotechLiquid Only
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