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A Smoothed Candle Channel Based on High-Low Standard Deviations

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Summary

This indicator overlays two colored channels derived from standard deviations of the High and Low values of smoothed indicator candles. Its parameters control the JMA smoothing depth and phase, a point gap to ignore, and the Bollinger-style calculation period and deviation. The channel is displayed with reduced brightness so it does not obscure the candles; the chart foreground setting can be changed for a clearer display.

The document describes the indicator's construction and chart presentation, but does not explain how to turn channel behavior into entries, exits, or risk limits. It provides no trading examples, performance results, or validation of the parameters. The implementation relies on an external smoothing library, so the visual behavior may depend on that library and the selected settings. The channel is therefore a technical analysis aid, not a demonstrated standalone strategy.

Key ideas

  • The indicator displays two channels based on standard deviations of smoothed candle High and Low values.
  • JMA depth and phase adjust the smoothing behavior.
  • A gap parameter excludes a specified point range from consideration.
  • The channel calculation uses a period and deviation setting similar to Bollinger bands.
  • The document gives no trading rules or evidence of strategy performance.

Tags

Technical indicatorsVolatility

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.