Building a Price Channel from Local Peaks and Valleys

Summary

The document explains the inputs and output buffers of a channel indicator. Its channel length setting determines how many bars are used to create the channel. A second setting controls the local peak and valley evaluation: the method considers a centered window extending the specified number of bars on each side of the bar being evaluated. The indicator is described as usable across symbols and timeframes.

The document identifies separate buffers for the resistance and support lines, with resistance at buffer index zero and support at index one. It provides no trading rules for interpreting channel breaks or touches, no parameter selection guidance, and no performance results. The description is therefore useful for understanding the indicator’s construction settings and reading its outputs, but it does not establish how the channel should be incorporated into a profitable strategy.

Key ideas

• The channel length input sets the number of bars used to form the channel.
• Peak and valley evaluation uses a centered window spanning bars on both sides of the candidate bar.
• The indicator is described as applicable to any symbol or timeframe.
• Resistance is read from the first buffer, while support is read from the second buffer.
• The document gives no entry, exit, or performance evidence for trading with the channel.

Tags

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