The Lopez Channel multi-time frame indicator determines the market’s tendency to trade in a narrow price range.

• Easy to understand
• Finds overbought and oversold states
• Draws when the bar closes and does not draw on the history
• The timeframe for the calculation can be configured
• The red line indicates the overbought price
• The green line indicates the oversold price

It has immediate trading opportunities.

• Looking for buying opportunities when the market is oversold
• Looking for opportunities to sell when the market is overbought

The indicator is calculated using the three-day moving average for the last two true highs minus ATR to calculate the lower line of the channel and the three-day moving average for the last two true lows plus ATR to calculate the upper line of the channel.

Arturo Lopez Perez, private equity investor, stock speculator, programmer, and founder of Point Zero Trading Solutions.