This is a very simple indicator, but useful for longs and shorts.
It gives the highest high, the lowest low, the middle point between both and an exponential average of the middle point of the last x periods.
There are some possibilities which can indicate the in and out for each trade:
- Buy longs if the upper band is higher than the previous value
- Or if the mid point changes the color from red to black
- Close longs if lower bands is lower than previous value
- Or if midpoint changes from black to red
- The same procedure for shorts
The standard values of the variables are:
x=10 (number of periods of the bands)
y=8 (number of periods of the EMA, exponential average of the middle point)
You can also play with the EMA instead of the mid point, if you want, or change the periods of bands and EMA depending on the timeframe or on your aggressiveness.
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c1=highest[x](high)//x=10 c2=lowest[x](low) c3=c2+(c1-c2)/2//Mid point mpm=ExponentialAverage[y](c3)//y=8 RETURN c1 AS "Highest", c2 AS "Lowest", c3 AS "Mid point", mpm AS "EMA over Midpoint" |
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No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.
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Ne serait ce pas un canal de Donchian ?
I never worked with the Donchian channel, but yes, you are right Supertiti: they are very similar, almost the same.
Hola Petrus
Estas aficionado de vino para tener este mote ?
El canal de donchian es la base de todo ! tengo uno “personalizado” que funciona de maravilla desde hace años.
un saludo desde Cadiz
Hombre, no te diré que no me guste el vino, y en especial éste, pero aún me faltan muchos trades positivos para poder comprar alguna botellita de esta marca… 😉
De todas formas tiene su mérito el reinventar el canal de Donchian sin conocerlo, no? :-))
Saludos desde Barcelona!