Trade Channel Indicator DCMV
The DCMV Indicator calculates the following Channel characteristics:
- Channel Bounds (for TP and SL). It's assumed that price will never go outside the channel.
- Center Line of the Channel.
- Settlement price (with probability 90% the price will return to this line).
- Reference line (used for detection of trend).
- Upper and Lower breakborder. Used for generation of trade signals: channel breakout (trend strategies), false breakouts (flat strategies).
- The indicator provide solution to the question of price movement direction and estimated price movement. For the upward movement the price will go to the Upper Bound of the Channel, for downward movement the price will go to the Lower Bound of the Channel.
- The probability of the direction can be estimated using the relative position of the Center Line and the Reference Line. If the Center line is higher than Reference Line, the price tends to upward movement, if the Center Line is lower than Reference Line, the price tends to downward movement.
- If the price go away of the settlement price, it will touch the previous minimum (if the price lower) or maximum (if the price higer than settlement price), the probability is 90%.
input int diapason=85;// Number of bars, used in calculation of DCMV input int history=100;// History depth
- 0 - Upper Bound
- 1 - Lower Bound
- 2 - Center line
- 3 - Settlement price
- 4 - Reference line
- 5 - Upper breakborder
- 6 - Lower breakborder
- 7 - Average breakline