This indicator setup highly inspired by Channel and . Big thanks to both Richard and Alan Hull.
Back test and live test it and come to conclusion of how to use this indicator for live trading.
200 plays major role in deciding the right trades using Channel. As part of this setup,
- If price is below 200 , then the Channel is highlighted in Red color
- If price is above 200 , then the Channel is highlighted in Green color
Default 20 period is used for the channel. However, the color highlight as per 200 position. Also, the middle basis color changes to Green and Red based on candle close of above or below.
Additionally, 5 period basis is used as tight stop loss. This can be used wisely or optionally based on trade decisions
//Idea of publishing this script is to identify the strength of the instrument using multiple confirmation.
//Using this indicator, changing inputs, and trading decisions are up to the users/traders.
//Courtesy: Thanks to Richard and Alan Hull as this indicator/script inspired by and