OPEN-SOURCE SCRIPT
Channel Corridor
Updated
OVERVIEW
The Channel Corridor indicator is designed to operate on a log chart of asset prices (e.g., BTCUSD), specifically on a weekly timeframe.
The intent of the indicator is to provide a visual representation of market dynamics, focusing on a dynamically adjusted corridor around a Simple Moving Average (SMA) of an asset's price. The corridor adapts to changing market conditions. The indicator includes channels within the corridor for additional reference points.
PURPOSE
CONSIDERATIONS
CREDIT
The Channel Corridor indicator is designed to operate on a log chart of asset prices (e.g., BTCUSD), specifically on a weekly timeframe.
The intent of the indicator is to provide a visual representation of market dynamics, focusing on a dynamically adjusted corridor around a Simple Moving Average (SMA) of an asset's price. The corridor adapts to changing market conditions. The indicator includes channels within the corridor for additional reference points.
PURPOSE
- Trend Identification: The channel corridor can aid in visualising the overall trend, as it dynamically adjusts the corridor based on an SMA and user-defined parameters.
- Volatility Assessment: The width of the channel corridor can may act as a gauge of market volatility.
- Reversal Points: The channel corridor may signal potential trend reversals or corrections when an asset price approaches the upper or lower bounds of the corridor.
- Long-Term Trend Analysis: The channel corridor may aid in longer-term trend analysis.
CONSIDERATIONS
- Validation: It's recommended that careful back-testing over historical data be done before acting on any identified opportunities.
- User Discretion: Trading decisions should not rely solely on this script. Users should exercise judgment and consider market conditions.
CREDIT
- Ideation: Thanks Sw1ngTr4der for the idea and corridor seed code
Release Notes
Changes as follows:- Aligned channel selection to the number of channel rendered. I.e., 2 channels selected creates 3 lines providing 2 channels, and so on
- Added channel projection logic and rendering. Length is selectable via UX widget, defaults to 13. Maximum forward projection is limited to 500 segments, so the maximum length forward is determined by the number of channels selected. Less channels means longer possible forward period
- Added input widget to control upper bound, lower bound and mid colors.
- Minor clean up of UX.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.