Price Channel

Price Channel Indicator is used to show buy and sell signals in trending markets.It is constructed by drawing upper and lower boundaries on a chart at the high and low points of the price flows for a definite number of periods.

Methods of use:

1. When the weekly closing price moves up to a new n-period high it is a buy signal.

2.  When the weekly closing price moves down to a new n-period low it is a sell signal.


Note: When the price moves out if its n-period range, go in the direction of this new trend.