In the thread
Brainwashing EA I posted an other indicator. See attached and image.
On the image b_channel.gif you may see:
- Up Channel (PC Upper line);
- Down Channel (PC Lower);
- Middle Channel.
PC Upper is maximum price for the n periods (PC Lower is the minimum one):
PC Upper = HH(n),
PC Lower = LL(n),
where HH(n) - highest from the all High value (Highest High) for n periods;
LL(n) - Lowest from the all Low value (Lowest Low) for n periods.
Thus, Up Channel (PC Upper line) and Down Channel (PC Lower) are the
dynamic line of support and resistance.
So, if we take into account the second indicator we will reduce some losses.