This multi-timeframe indicator identifies the market's tendency to trade within a narrow price band.
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- It is easy to understand
- Finds overbought and oversold situations
- Draws at bar closing and does not backpaint
- The calculation timeframe is customizable
- The red line is the overbought price
- The green line is the oversold price
It has straightforward trading implications.
- Look for buying opportunities when the market is oversold
- Look for selling opportunities when the market is overbought
The indicator is calculated using a three-day moving average of the last two true highs minus ATR to derive the lower channel and a three-day moving average of the last two true lows plus ATR to derive the lower channel.
Input Parameters
- Timeframe: Timeframe to calculate the bands from
- Indicator Period: Amount of bars to look back to calculate the channel
Support
I am happy to provide free products but given my limited time, they come without support of any kind. My apologies.
Author
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.
