The default is to display 8 core channels (with the option to plot the sub channel lines, off by default).
It’s simple really—this just divides the price action into equal channels. I’ve found this pattern helpful across all markets.
It’s dynamic because if a new high close or a new low close is created the all channels will adjust.
- The key levels are 75% (blue), 50% (aqua), 25% (blue).
- In between those key levels is a level separator.
- The high close and the low open are both red.
- These can all be customized in the settings.
What you’ll typically see at these channel boundaries are price slow downs, reversals, .
Turning on sub-channels will provide further channel plots. On these sub-channels you’ll also see the same type of price action activity as mentioned above.
I’ve developed a trading system where this indicator helps identify key areas. Combined with a few other indicators and key EMAs this trade system provides high probability trades around these key channel areas.
- Resolution can now be selected (default is daily). See below how this might be helpful
- Added check box to ignore resolution. If that is clicked it channels will be drawn from the highest close and the lowest close
- Added the ability to quickly change colors of different channel lines (you can still change individually this just makes it easier to change all to one color)
With resolution. If you use anything less than a day typically the lookback on the chart will reduce. Choose the 5min resolution to see how this works. I've found it provides some additional results and draws tighter channels because it's starting from a later date.
There's 2 additional checkboxes in this release and only one of them can be selected or will be used.
If you select the Daily it will plot dynamic channels for each individual day. If you select Weekly (unselect daily) it will plot weekly channels.
If you don't choose either one of these you can select the resolution and a full chart calculation will be used based on the resolution you select.
Clicking below that will ignore that calculation and will use all available data for that chart to plot dynamic channels.
Projections are plotted on the top and bottom with plus symbol.
It only plots one channel up and colors are the same as what is selected for the main channels.
Keep in mind this adjusts as price makes new lows or new highs.
Marking the projections on a chart as price moves in that direction is how I've found this most helpful. It's really helped in scalping in both the FOREX and Crypto market.
Thanks for your share my friend
a) that is interesting. The first step I think would be to overlay with the volume profile and see if that correlates to the channels first. If it does that functionality might not be necessary but great suggestion.
b) That would be interesting as well. Daily might be too tight but weekly or monthly would be a good first step. But that's just resolution so if it was coded for either of those the daily could be easily added. Might be a good scalper template.
I'll look at the Frequency indicator as well.
In due time I’ll try and do something to the tune of what I’m talking about and I’ll share it with you, see if we can bring something beautiful to the community. I’ll definitely heed your suggestions in the meantime though. Hopefully incubating the idea over the next few weeks will brew something special