Definition
The Price Channel Strategy creates a channel with its bands based on the highest and lowest values for the last X bars. Remember, X is the value of the 'Length' in the strategy settings. The strategy enters a long when the high of the current bar is equal to the upper channel band of the previous bar. It enters a short if the low of the current bar equals the lower channel band of the previous bar.
Summary
The Price Channel Strategy was created for breakdowns and breakouts from specific channels. It can be used by momentum traders or swing traders who are looking to detect breakouts from specific ranges. The strategy creates a channel with its bands based on the highest and lowest values for a specific number of bars. The bars are determined in the strategy settings. The strategy enters a long when the high of the current bar is equal to the upper channel band of the previous bar. It enters a short if the low of the current bar equals the lower channel band of the previous bar.
