Article/Author: Omega Research Inc., 1997

Download: PRICECHANNEL.ELA

Category: Indicator > Bands

Description:

The Price Channel indicator calculates the highest high and lowest low of the trailing number of bars specified by the input Length. Lines representing the trailing highs and the trailing lows are then plotted.

Usage:

When a market moves above the upper band, it is a sign of market strength. Conversely, when a market moves below the lower band, it is a sign of market weakness. A sustained move above or below the channel lines may indicate a significant breakout.

INPUTS: LENGTH(10), DISPLACE(0);

VARIABLES: TCHAN(0), BCHAN(0);



TCHAN = HIGHEST(HIGH, LENGTH)[1];

BCHAN = LOWEST(LOW, LENGTH)[1];



IF DISPLACE >= 0 OR CURRENTBAR > ABSVALUE(DISPLACE) THEN BEGIN

	PLOT1[DISPLACE](TCHAN, "TOPCHAN");

	PLOT2[DISPLACE](BCHAN, "BOTCHAN");



	{ALERT CRITERIA}

	CONDITION1 = PLOT1 <> PLOT2;

	IF CLOSE > PLOT1 AND CONDITION1 THEN

		ALERT("PRICE HAS CLOSED OVER THE TOP BAND")

	ELSE

		IF CLOSE < PLOT2 AND CONDITION1 THEN

			ALERT("PRICE HAS CLOSED UNDER THE BOTTOM BAND");



END;