I tried several channels, like the supertrend, ATR, Donchian or Bollingers, but they do not seem to fit my needs.
So I created a new channel to PREDICT the next impulse move of a price.
The current value of the top or bottom of the channel is based on 2 previous candles (not the candle itself), and it takes into account: - The Direction of the previous candles (red or green) and - The Width of their bodies
In my channel, the top or bottom lines will cover the price movement most of the time. But in some cases, when the price is on a big move, it will go out of the channel. And this is the time we need to consider a buy/sell (or take some profit) as well (not necessarily 100% of the time, though).
Personally, I like to use another oscillator in combination with this channel to predict whether it will reverse after the breakouts or continue to make another peak. If you are a DCA or long-term investor, I guess it would be safe to buy at the blue signals (out of bottom) and take some profits at the orange signals (out of top).
I also added an alert when the price breaks out of the channel for easier tracking.
Very interesting concepts, though shorter length is more useful for my purposes. Have you considered using the idea to construct an Ichimoku style indicator, though I have no idea what would be the outcome😂😂
niceboomer
⋅
@apdusp, thanks. I did but I'm not an expert in the Ichimoku cloud. For me, the breakout from the ichimoku cloud is too late to enter.
apdusp
⋅
@niceboomer, exactly for that was my suggestion as your idea applied to the construction of an Ichimoku B might be more precise while still keeping its best features. If I may suggest, check @LonesomeTheBlue 's Ichimoku Cloud for the quantitative features
niceboomer
⋅
@apdusp, I tried. For me, the new Ichimoku has a better result, but it's still not the one I'm looking for. Btw, what is your favorite length?
apdusp
⋅
@niceboomer, still testing how much value it adds to my selling spreads purpose, but for now, 24 looks more interesting (I use daily charts). I didn't check the code yet, but I liked the concept
Have you considered using the idea to construct an Ichimoku style indicator, though I have no idea what would be the outcome😂😂