Automatic Growth Channels from Historical Highs and Lows

Summary

This indicator constructs a set of expanding price reference levels from the history available on the chart. On each bar, it finds the highest high and lowest low across the bars loaded so far, then averages those extrema cumulatively to form upper and lower boundaries. Their midpoint and additional intermediate levels divide the range into halves, quarters, and eighths. The resulting lines are extended forward as a simple growth model that can be viewed on a regular or semi-logarithmic scale.

The document provides an open-source implementation and notes that the line placement has a time lag and is only an approximation. The calculation depends on how much history is loaded, so users may need to load data back to the earliest available bar. It offers no trading rules, backtest, or evidence that the projected levels predict future prices; the output is best treated as a visual framework for examining historical price ranges.

Key ideas

• The model uses the highest high and lowest low across the chart history available at each bar.
• Cumulative averages of those extrema create the upper and lower reference boundaries.
• Midpoints between the boundaries produce additional levels that subdivide the range.
• A semi-logarithmic option transforms prices before calculating the levels and reverses the transform afterward.
• The author describes the projected lines as approximate and provides no evidence of predictive performance.

Tags

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