K_Channel is a technical analysis indicator that allows you to determine with sufficient probability when the currency market is dominated by a trend or flat.

The indicator can work on any timeframe. However, to minimize the probability of false signals, you should set the timeframe from H1 and higher.

The indicator is shown as lines located above and below the EMA. The average true Range (ATR – Average True Range) is used as the width of the bands.

Thus, a channel is built based on the volatility. In this version of the indicator, you can change all the parameters of the main moving average.

Unlike, for example, the Bollinger bands, where the value of the standard deviation is used for the calculation, the K_Channel algorithm plays a key role in the maximum and minimum prices for the period.

The K_Channel indicator is calculated using the following formula:

Upper Level = EMA13 (Typical Price) EMA13 (Trading Range)

Lower Level = EMA13 (Typical Price) – EMA13 (Trading Range),

Trading Range = max(high(t), low (t))- min (high (t), low (t)), where

high (t) – the maximum price of the current period,

low(t) – the minimum price of the current period.

• period – the number of bars used to calculate the indicator;
• method-select from four moving averages;
• apply to-choose from seven types of applied price.