The Channel study plots two lines as an overlay on the bar chart. The two lines identify the highest high and the lowest low which occurred during the preceding user specified period.
Characteristics & Usage
Channel is an overlay study that may be used to identify a trading range. The highest high and the lowest low within the look back period are considered support and resistance levels.
A move above or below the Channel lines may be considered a breakout from the trading range.
Channel is similar to the Level study found in the Functions group. The principal differences are:
•Channel identifies the highest high and lowest low in the user defined look back period. The Level study may be used to track the highest high and lowest low with different individual look back periods.
•Channel identifies the highest and lowest prices over the preceding period while Level includes the current bar's prices.
•The Channel study can be marked when a user-defined condition is true.
Calculation
CHI = Highest High over Period
CLO = Lowest Low over Period
Channel Parameters
|
Parameter |
Description |
|
Color |
Line color. |
|
MarkIt |
Opens Specify Conditions window. |
|
Weight |
Line thickness. |
|
Period |
Number of bars in the lookback range. |
|
ShareScale |
Determines whether sharing of the vertical scales between studies is accepted. •Auto = System determine whether sharing is feasible. •On = Scale is shared regardless of the functions and studies displayed. •Off = Scale is not shared. ShareScale must be On if study is overlaid on a study with multiple outputs. |