PZ Lopez Channel MT5
The Lopez Channel multi-timeframe indicator identifies the market's tendency to trade within a narrow price band.
- It is easy to understand
- Finds overbought and oversold situations
- Draws at bar closing and does not backpaint
- The calculation timeframe is customizable
- The red line is the overbought price
- The green line is the oversold price
It has straightforward trading implications.
- Look for buying opportunities when the market is oversold
- Look for selling opportunities when the market is overbought
The indicator is calculated using a three-day moving average of the last two true highs minus ATR to derive the lower line and a three-day moving average of the last two true lows plus ATR to derive the upper line.
Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.