Channel/Equidistant Channel
Description:
The channel is a combination of two parallel lines: the trendline and the channel line. Recognizing existence of the channel might be crucial to the analyst as prices often remain within the same channel, while breaking out of the channel can predict change in trend.
In uptrend conditions, it is suggested that the trendline be plotted across the lows, and the channel line is plotted from the first significant peak. It is said that the channel exists if the next rally reaches and bounces back off the channel line. Conversely, in downtrend, the trendline is plotted across the peaks and the channel line is plotted from the first prominent trough. Going back up from the channel line after the next drop might signify existence of the channel.
In both uptrend and downtrend, failure to reach the channel line might indicate that the trend line will be broken and the trend will get weaker or reverse. Conversely, breaking the channel line might be considered amplification of the current trend.
Just like the trendline, the channel allows you to view a label showing its principal parameters. These parameters are: the length of the channel (as expressed in both number of bars and time units such as days, hours, minutes, depending on the timeframe you are using), the price change correspondent to the difference between the start and end points of either line (expressed in both dollars and percentage), its slope, and its height (the distance between the line expressed in both dollar and percentage values).
Overlapping with an underlying object :
> No repainting
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