Channel Blocker
Posted: 26 Mar 2013 11:01
Hi,
Some strategies are developped for trading in a range. This indicator Channel Blocker can be used to filter the trades and only allow them when they are in a range.
It has 2 parameters:
Span: number of periods
Delta: number of ticks
Example: if the chart is on a 30 min time frame and the number of periods is put on 960, then the filter will calculated the highest price and the lowest price since 960 x 30 min = 28.800 min = 20 days.
From the highest point, the delta will be substracted, e.g. 2.000 ticks on forex = 200 pips. So, if the highest price is 1,3750, the upper band of the channel will be at 1,3550. From the lowest point the delta will be added. So if the lowest point in the last 20 days is 1,2900 the lower band of the channel will be at 1,3100. In this case trading signals will only be accepted when the price hoovers between 1,3100 and 1,3550.
If you are a customer of WH Selfinvest and you whish to receive the full strategy, please mail us at info@whselfinvest.be .
Some strategies are developped for trading in a range. This indicator Channel Blocker can be used to filter the trades and only allow them when they are in a range.
It has 2 parameters:
Span: number of periods
Delta: number of ticks
Example: if the chart is on a 30 min time frame and the number of periods is put on 960, then the filter will calculated the highest price and the lowest price since 960 x 30 min = 28.800 min = 20 days.
From the highest point, the delta will be substracted, e.g. 2.000 ticks on forex = 200 pips. So, if the highest price is 1,3750, the upper band of the channel will be at 1,3550. From the lowest point the delta will be added. So if the lowest point in the last 20 days is 1,2900 the lower band of the channel will be at 1,3100. In this case trading signals will only be accepted when the price hoovers between 1,3100 and 1,3550.
If you are a customer of WH Selfinvest and you whish to receive the full strategy, please mail us at info@whselfinvest.be .