OPEN-SOURCE SCRIPT
Dynamic Price Channels
Updated
This indicator plots dynamic price channels based on the security highest close and lowest open.
The default is to display 8 core channels (with the option to plot the sub channel lines, off by default).
It’s simple really—this just divides the price action into equal channels. I’ve found this pattern helpful across all markets.
It’s dynamic because if a new high close or a new low close is created the all channels will adjust.
What you’ll typically see at these channel boundaries are price slow downs, reversals, support and resistance.
Turning on sub-channels will provide further channel plots. On these sub-channels you’ll also see the same type of price action activity as mentioned above.
I’ve developed a trading system where this indicator helps identify key pivot areas. Combined with a few other indicators and key EMAs this trade system provides high probability trades around these key channel areas.
The default is to display 8 core channels (with the option to plot the sub channel lines, off by default).
It’s simple really—this just divides the price action into equal channels. I’ve found this pattern helpful across all markets.
It’s dynamic because if a new high close or a new low close is created the all channels will adjust.
- The key levels are 75% (blue), 50% (aqua), 25% (blue).
- In between those key levels is a level separator.
- The high close and the low open are both red.
- These can all be customized in the settings.
What you’ll typically see at these channel boundaries are price slow downs, reversals, support and resistance.
Turning on sub-channels will provide further channel plots. On these sub-channels you’ll also see the same type of price action activity as mentioned above.
I’ve developed a trading system where this indicator helps identify key pivot areas. Combined with a few other indicators and key EMAs this trade system provides high probability trades around these key channel areas.
Release Notes
Added the ability to change resolution and some usability updates.- Resolution can now be selected (default is daily). See below how this might be helpful
- Added check box to ignore resolution. If that is clicked it channels will be drawn from the highest close and the lowest close
- Added the ability to quickly change colors of different channel lines (you can still change individually this just makes it easier to change all to one color)
With resolution. If you use anything less than a day typically the lookback on the chart will reduce. Choose the 5min resolution to see how this works. I've found it provides some additional results and draws tighter channels because it's starting from a later date.
Release Notes
Added the ability to have dynamic channels drawn on either the Weekly or Daily high and low.There's 2 additional checkboxes in this release and only one of them can be selected or will be used.
If you select the Daily it will plot dynamic channels for each individual day. If you select Weekly (unselect daily) it will plot weekly channels.
If you don't choose either one of these you can select the resolution and a full chart calculation will be used based on the resolution you select.
Clicking below that will ignore that calculation and will use all available data for that chart to plot dynamic channels.
Release Notes
This update has the option to plot projections.Projections are plotted on the top and bottom with plus symbol.
It only plots one channel up and colors are the same as what is selected for the main channels.
Keep in mind this adjusts as price makes new lows or new highs.
Marking the projections on a chart as price moves in that direction is how I've found this most helpful. It's really helped in scalping in both the FOREX and Crypto market.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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