The Price Channel indicator is a handy tool for traders looking to gauge market trends. It calculates the highest high and lowest low based on a specified number of bars, which you can adjust using the input Length.
Once set up, it plots lines that represent these trailing highs and lows. Now, here’s the kicker: when the price breaks above the upper band, it’s typically a sign of market strength. On the flip side, if it dips below the lower band, it suggests market weakness. Keep an eye on these movements, as a sustained break above or below the channel often hints at a significant breakout in either direction.
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