EMA Trend Channels Built from High and Low Prices

Summary

This document introduces an indicator that plots two channels of moving averages derived from high and low prices. Users can configure a fast and a slow channel by choosing the period and calculation method for each moving average. The examples illustrate settings with a 21-period fast average paired with either a 34-period or a 120-period slow average.

The description explains the indicator’s inputs and general construction, but it does not define how to interpret channel crossings, specify entry or exit rules, or provide backtest results. It therefore serves as a visualization tool for comparing faster and slower price references rather than a complete trading strategy. Traders would need to decide how the channels fit into a broader method and assess the chosen averaging methods and periods on relevant data. No market, timeframe, or risk controls are specified, so the examples should not be taken as performance guidance.

Key ideas

• The indicator plots fast and slow moving-average channels calculated from high and low prices.
• Each channel has a configurable period and moving-average method.
• The document illustrates a 21-period fast average with 34- and 120-period slow averages.
• It does not provide trading signals, entry or exit rules, or performance evidence.
• The indicator is a charting aid that requires a separate interpretation and evaluation method.

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