The indicator calculates reversal points based on the past trend and forms a channel on this basis. This elapsed period of time from which the reversal points are determined can be specified in the settings.
The indicator is suitable for all trading areas, whether forex, crypto, metals, indices or futures. All areas traded in Metatrader 4/5 are covered by the indicator. All time spans are also supported. Whether scalping, day trading or interday trading, the indicator is suitable for every type of trading.
It is recommended to use the standard settings to detect reversal points and to add an additional channel to display trends. To do this, the indicator only needs to be placed on the chart one more time. The reverse channel is shown in blue and red in the screenshots. The trend channel, on the other hand, is in white.
These channels can be used for reversal / trending strategies. Ideally with the help of the stochastic indicator or another preferred indicator. A combination of two indicators provides a solid foundation for trading.
|Parameter ||Reverse channel ||Trend channel |
|Average Value (Number of determined reversal points) ||10 ||30 - 50 |
|Check history bars (Number of candles) ||1000 ||1000 |
|MA period ||100 ||100 |
|MA method ||Exponential ||Exponential |
|MA price ||Closed price ||Closed price |
|Shift ||0 ||0 |
This value defines the number of reversal points. The higher this number, the narrower the trend channel. Depending on what is being traded, this value should be increased or decreased.
The following values are recommended:
Forex (EURUSD): 30-40
Metal (XAUUSD): 40-50
Crypto (BTCUSD): 40-50
If an individual channel is preferred, the value can be entered in section 2. The value "0" automatically determines the channel on the basis of the historical candlesticks and the reversal points. All other values generate an individual channel.
The best ratio could be achieved at ~ 1: 4 or higher. (Example 1: 4 - trend channel 50 points, reverse channel 200 points).