Price Corridor is a sign based on an entirely new thought! You won’t find anything like it. The indicator predicts the probability of a price reversal, and multi-colored lines help see the market situation visually. It may be utilized both for separate trading and as an auxiliary tool for analyzing the market situation.
The indicator is based on the middle point, which you can adjust. The indicator analyzes price deviations in the midline for the last 10,000 pubs and brings multi-colored lines at a certain distance in the midline. Each line signifies some probability of reversal: green 50%, solid red 100%, and the lines between them are adjusted by the selected set of lines (Standard, Accurate, Rude, Simple) and the probabilities depend on it.
- MA period — the period of the midline.
- MA type — the type of the middle line.
- MA applied price — price used in the calculation of the average.
- Lines set — a set of lines. It can be Standard(70-80-90-95-98), Accurate(75-85-92-96-98), Rude(60-70-80-90-95) and Simple(70-80-90). The numbers in parentheses are the probability of a reversal at the lines, see the picture for clarity.
- Count of painted bars — the number of drawn bars. Given that 10,000 bars are analyzed individually for each bar, you should set smaller values on slow computers. This way, the indicator will not be drawn far and will work faster when switching timeframes.
- Show current value-enable / disable the display of the current value.
- Text size — the text size of the current value.
- Text color — the text color of the current value.
- Notification type — the notification method. It can send both a notification in the terminal and Push notifications to the phone.
- Alert level — the level at which the notification will be sent. Please note that the notification is sent only when new bars are opened, so if the price has a tail, you will not receive a notification.
The indicator can be used on any timeframe (but better from M15 to D1). If you do everything right, you will receive either large profits or tiny losses. The method of trading depends on the trend over a long period. You can use both standard trend indicators (CCI, ADX, etc.) and custom ones.
I offer you 2 strategies:
- On the flat — it is quite simple here. We open a trade at the orange or red level (the higher the value, the lower the risk) and close it when the gray line crosses. You can use a trailing stop (on large timeframes), or partially close orders as you make a profit.
- On the trend-it depends on the strength of the trend. In strong trends, trade after adjustments, provided that it has reached the green or yellow level, and close the trade at the opposite green level. After the price passes the gray level, move the trade to breakeven. If the trend is weak, you can wait for higher levels.
If the price breaks through the solid red line, it means that the price has deviated more than in the last 10,000 bars (this is rare). In this case, open the trade directly at the level of 100 and close when crossing the level of 95. The indicator can also be used as a trend channel, and the lines act as borders.
Attention! Before trading on a live account, be sure to practice on a demo account. Evaluate the risk levels and think through a trading strategy for yourself. Also watch videos and pictures, they contain useful information. The algorithm uses complex calculations, so the terminal can slow down on weak computers.
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- Profile: Denis Glaz