Price Channels Indicator

Introduction
Price channels like the band Bollindzhera form boundaries above and below the price bars and can be used as an indicator of variability. Price channels are formed by defining the set of periods, which will mark the graph up or at least n periods around the price bars. For example, a 20-day price channel will show the highest closing level for the past 20 days above the price line, and will observe the graph of the lowest closing level for the past 20 days below the price line. If the most recent price of a new maximum or minimum for n periods, then it will be on the schedule outside of the price channel. Price channels are different from ????? Bollindzhera that they use the minimum and maximum price values, instead of moving averages as a border.
Price channels can be applied to day, week, or monthly schedule and can shape the signals of buying and selling at the points breakthroughs. When the price breaks above or below, respectively, upper or lower the price channel, the new maximum or minimum, become active. When the price breaks above 20-day price channel, the price reached a 20-day maximum, and could potentially start the upward trend. In this situation, break the upper price channel may indicate a good time to buy a market instrument.

Sample

This schedule for the IBM breakthrough illustrates the lower channel (red arrow) followed by top-down trend. This new 20-day minimum is a signal to sell, and this signal was not deployed until the price had not crossed the June 9, the upper price channel.

The use of graphics programs



In most graphics programs, you can choose the length of time for pricing of channels. The more time taken, the more significant will be a breakthrough and a significant channel served signals.
The second option allows the user to move the price channel, left or right. For example, 10 for the second option price will move to the right channels for 10 years.