Previous-Day Price Channels for Breakout and Reversal Trading

Summary

The indicator plots the previous trading day’s price channel on a chart after the current trading day has closed. Users can set the trading day’s start and end hours, and the indicator colors the channel according to whether its range is larger or smaller than the preceding day’s range. It can also display a label showing the channel size.

The prior day’s high and low levels are presented as reference points for trading during the current session, including breakout or rollback approaches. The document describes the indicator’s settings and shows that it can be viewed on different chart time frames, but it supplies no performance results, entry rules, exit rules, or risk controls. Its usefulness therefore lies in defining and displaying a daily range; whether the levels provide an edge would require separate testing, with attention to the chosen session hours and instrument.

Key ideas

• The indicator displays the previous completed trading day’s channel for use during the current session.
• Trading day start and end hours are configurable.
• Channel colors distinguish whether the prior day’s range expanded or contracted versus the day before.
• The displayed levels may serve as references for breakout or rollback trading.
• The document provides no tested performance, detailed trade rules, or risk controls.

Tags

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