Moving Average Channel with Fibonacci-Point Levels

Summary

The Subway indicator displays a price channel around a central line derived from moving averages. Its two period settings define a fast and a slow moving average, though the document does not specify how they are combined to form the center line. A selectable level model places channel lines at symmetric point distances above and below that center.

Four predefined layouts use increasing Fibonacci-like point distances, from 89-point steps in the first model through levels reaching 987 points in the fourth. The document gives no evidence that these levels are calibrated to volatility, adapted across instruments, or associated with profitable entries and exits. It also provides no rules for interpreting touches, breaks, or reversals at the channel boundaries. The indicator is therefore best understood as a configurable moving-average reference channel whose parameters and trading use require independent evaluation.

Key ideas

• The indicator plots a channel based on moving averages.
• Separate settings control the fast and slow averaging periods.
• Four level models define symmetric point distances from the central line.
• The supplied description does not state entry, exit, or risk rules.
• No backtest or evidence for the channel’s predictive value is included.

Tags

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