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This is a library which enables you to generate signals when the market price reaches the channel lines. Some people assume that when the price "comes close" to a channel line, that this is the entry signal, but in reality this is just a guess and not an informed trading decision.
This engine is more sophisticated as it first examines when the price came close (in percentage proximity) to a channel line, and then started to reverse (in percentage amount) from the extreme channel line. It is using a state machine to instruct these rules consistently.
The signal does not predict market direction; it simply alerts you that price has reached a channel boundary. This event serves as a critical inflection point. The price will either respect the boundary which would confirm the channel as a structural support or resistance level...or else it will aggressively break through it.
This could be used with any channel. In this case, I use it with the Donchian channel.
MACD Multi-color Histogram with Signal Line
MACD Multi-color Histogram
ADX Wilder with Bollinger Bands
This custom indicator displays the ADX Wilder, +DI, and -DI lines together with Bollinger Bands calculated on the ADX main line in a separate window. It helps traders evaluate both trend strength and the volatility range of ADX values. The middle, upper, and lower bands can be used to identify ADX expansion, contraction, and potential strength breakouts. The indicator is useful for confirming trending conditions, spotting increasing momentum, and detecting when ADX moves outside its normal range. Input parameters allow adjustment of the ADX period, Bollinger Bands period, deviation, and applied price settings.
