> For the complete documentation index, see [llms.txt](https://docs.million-moves.net/start/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.million-moves.net/start/learn-the-indicators/million-moves-algo/show-channel-breakout.md).

# Show Channel Breakout

The channel breakout indicator draws green and red lines on a trading chart to mark resistance and support levels, helping traders identify potential breakout points for entering or exiting trades.

You can activate the Channel Breakout in the Million Moves Algo settings:

<div align="left"><figure><img src="/files/xPLE5BYYomwCmL1suaE0" alt=""><figcaption></figcaption></figure></div>

**Let's break down how this function works:**

The channel breakout indicator adds these lines on the chart to mark important levels. The red line at the bottom is like a safety net, and the green line at the top is like a barrier.

Here's how it figures out where to put these lines:

1. **Looking Back**: The indicator uses a smart method to look back in time and find places where the price had trouble going above (resistance) or falling below (support). It pays attention to where the price seemed to stop moving up or down.
2. **Drawing Lines**: Once the indicator finds these areas, it draws the red bottom line at a level where the price had a hard time going below. This is a support area, like a floor that prevents the price from falling further. The green top line is drawn where the price struggled to go higher. This is a resistance area, like a ceiling that stops the price from going up.
3. **Spotting Breakouts**: When the price moves close to these lines, traders watch closely. If the price breaks through the red bottom line with a full candle body (the whole shape of the candlestick) closing below it, it could be a sign that the price might keep going down. Similarly, if the price breaks above the green top line with a full candle body closing above it, it could mean the price might continue rising.

Summary: The channel breakout indicator is drawing lines on the chart to show where the price had trouble moving in the past. When the price breaks through these lines with a full candle body closure, it could be a good time to consider making a trade because the price might be about to make a bigger move.


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