Channel Rejection Signals with Optional Higher-Timeframe Smoothing

Summary

This indicator description defines reversal-style signals around a price channel. A sell arrow follows a bullish candle that reaches above the upper band when the next candle closes bearish; a buy arrow follows a bearish candle that moves below the lower band when the next candle closes bullish. The channel uses a triangular moving-average window and a deviation multiplier to set its bands. Arrow spacing scales with ATR so markers remain legible across instruments and timeframes.

The indicator can calculate the channel on a higher timeframe than the chart and optionally interpolate between higher-timeframe closes to smooth displayed lines. Optional filters include a minimum channel width, relative tick-volume confirmation, and a cooldown between signals. A closed-bar setting is offered to avoid signals changing on the still-forming candle, while alerts may be tied to band penetration by a high, low, or close. These are described features rather than evaluated results: the document provides no backtest, signal accuracy, or profitability evidence, and interpolation affects display rather than demonstrating predictive value.

Key ideas

• Sell and buy signals mark bearish and bullish closes after price penetrates the corresponding channel band.
• The channel is based on a triangular moving average and a configurable band deviation.
• ATR scales the visual offset of signal arrows.
• Higher-timeframe calculation, interpolation, width and volume filters, and signal cooldown are optional.
• Closed-bar signaling can avoid changes while the current candle is still forming, but no performance evidence is supplied.

Tags

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