Price Channel

The Price Channel defines a price channel based on:

1. for the upper part: the high of the last p bars
2. for the lower part: the low of the last p bars

Note: The calculation of highs and lows does not take into account the current bar.

The Price Channel can be used to identify the beginning of a significant upward or downward variation. The Price Channel can also be used to identify overbought or oversold situations during a phase of significant price evolution.

Example