Understanding the Dynamic Gaussian Channel Indicator
What is it?
The Dynamic Gaussian Channel indicator helps traders identify shifting support and resistance levels by utilizing smoothed price data with a Gaussian filter.
Key Features
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Three Distinct Lines: Resistance (DRAW_LINE), Median (DRAW_LINE), and Support (DRAW_LINE).
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How It Works:
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Applies Gaussian smoothing to both high and low prices
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Identifies extrema over a specified period
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Constructs a channel formed by the smoothed values
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Customizable Settings:
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Calculation period (InpPeriod)
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Choose line colors and styles for each level
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How It Functions
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Initialization: Computes Gaussian filter weights for smoothing
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Smoothing Process: Applies the filter to high and low prices
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Defining Levels:
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Resistance = the maximum of smoothed highs for the chosen period
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Support = the minimum of smoothed lows for the chosen period
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Median = the average of support and resistance
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Implementation Highlights
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Utilizes indicator buffers to represent the three levels
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Employs a Gaussian filter with a 5-bar window
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Optimized for recalculating new bars only
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Compatible with various timeframes
This indicator proves invaluable for pinpointing dynamic support and resistance levels, helping traders define price channels with ease.
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