Forex channel indicator.
A fairly functional technical analysis indicator that allows you to create a
trend channel on the chart of the desired currency pair.
The Forex channel indicator is based on the construction of several parallel curves, which significantly expands the possibilities of analysis.
Its work is based on the “Moving Average”; you can easily change its parameters in the indicator settings and make the script more efficient.
The construction of a price channel occurs according to an unusual scenario; after launch, the Forex channel indicator immediately draws three support levels and three resistance levels.
In addition, there is a base line, which serves as the main guideline for price movement. The different colors of the levels also help you navigate the situation. If you look at the chart with the indicator installed, the strategy for its use will immediately become clear, and you can get a good result using the default settings.
For example, the presented figure clearly shows that the market is dominated by an upward trend, so opening purchase transactions is more rational if the price deviates from the baseline in a downward direction.
The best moment to open a trade is when the price turns around the third or second support line.
The advantage of the Forex channel indicator is its versatility; this tool is perfect for use in strategies built on a breakout, trend trading or three.