Channel, made of 5 MAs, which a made this way: High of N-period SMA - Low of N-period SMA + X-period SMA (check the code), where N and X are defined by your input.
Main purpose: helps you understand in what range price can move. WARNING! HAS TO BE USED WITH OTHER INDICATORS TO HAVE MORE ACCURATE ENTRIES!!!
If the price is above or below the channel, it means that the movement is very strong and you count it as a trend, but be careful then the price returns to the channel, as correction will follow very soon. Use fib correction tool to understand the approximate depth of correction, works pretty good.
Recommendation: consider using the Vortex Indicator( len 21 and 14 are fine; for trend) and "Vumanchu Divergencies + B"(for anything, but calibrate for accuracy, otherwise there will be too much false signals). If you want to see more options where the price might go, just add new MA and add/substract to/from its value avg1*(any of fibonacci correction levels, I personally use 1.618 and 2.618 and for me it is ok): plot(show_ma1 ? ma1+([[[any of fib correction levels, like 0.27, 0.382, 0.618 and etc.]]]]*avg1) : na, color = ma1_color, title="MA №1")
Recommendations and feedback are welcome(!) Take your wins
Recommendation: use Anchored VWAP (AVWAP) with GNC to make your entries super safe. Already working on GNC v2.
tarasenko_
⋅
You may experiment with types of MA and their periods at line 18 to calibrate the output for best results. Before I published this script I just found that 200 period is ok for me. Maybe you will find something even better. Good luck.