BE Channel OHLC
The creation of this indicator was inspired by the phrase of the famous trader Michael Covel "Price is the best indicator in the world". Not everyone is able to see the market through the eyes of a professional. Probably an indicator that does not distort the price and visualizes what is happening on the market can help you. Indicator "BE Channel OHLC" has been created for this purpose.
The indicator name has not been chosen by chance. The indicator draws a channel using OHLC prices (OPEN, HIGH, LOW, CLOSE). They are the basis for plotting the chart in the trading terminal. The same data are used for mathematical calculations of most indicators, but BE Channel OHLC uses these data unchanged, as they are.
- The indicator plots a channel formed by the OHLC levels of candlesticks of the timeframe selected in the settings.
- It visually demonstrates the nesting of smaller timeframes into higher time periods.
- It allows you to observe the trend formation on lower timeframes and keep tracking of what is happening on higher ones.
- It does not change the data, therefore it cannot be mistaken, is never delayed or redrawn.
- The levels can be used for support and resistance, and also as signal levels for determining trend reversals.
Since the price serves as an indicator, it is used to find the entry and exit signals. To achieve these goals, the indicator constructively provides the channel shift, so its levels can be used as a signal for determining the trend reversal, for the calculation of stop loss and take profit, or as support and resistance, depending on the rules of the used trading strategy.
Michael Covel says that trading on timeframes below one-hour does not make sense, that is why smaller periods cannot be selected in the indicator.
Possible Indicator Use Options
- Price crossing the CLOSE line – a signal to enter in the direction allowed by the signals filter.
- Price crossing the OPEN line – a signal to close all positions by Market.
A Filter of Signals:
- CLOSE above OPEN – BUY trading is possible.
- OPEN above CLOSE – SELL trading is possible.
STOP LOSS and TAKE PROFIT:
- HIGH - depending on the trade direction allowed by the signal filter.
- LOW - depending on the trade direction allowed by the signal filter.
Attention! The indicator is not a trading system. The above described possible use variant is published as a sample and does not guarantee profit from its use. The indicator can be used as a part of trading systems.
Valery V. Alexeev, a private investor, stock trader, programmer and founder of "BREAKEVEN POINT" - development of automated trading systems.