T-Channel is a technical analysis indicator that allows you to determine with sufficient probability when a trend or flat prevails in the foreign exchange market.

The indicator is based on TEMA (Triple Exponential Moving Average). The advantage of the TEMA moving average is that it provides less delay than a moving average with a single or double smoothing.

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

The indicator displays the channel as lines located above and below the midline. The upper and lower lines can serve as resistance and support levels.

Sell when the price reaches the upper line, and buy when the price reaches the lower line.

In this case, you should use a small stop loss to protect against false signals.

The “Inputs” tab of the indicator allows you to select:

• indicator period;
• one of the seven types of applied price (Close, Open, High, Low, Median, Typical, Weighted);
• horizontal shift of all lines on the chart;
• vertical shift of the upper and lower lines relative to the midline.

The “Colors” tab of the indicator allows you to select the color, thickness, and style of the indicator lines.

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• period – the number of bars used to calculate the indicator;
• applied price-choose from seven types of applied price;
• shift – horizontal shift of all lines on the chart;
• channel width – vertical shift of the upper and lower lines.

The T-Channel indicator is calculated using the following formulas:

• Upper Level = TEMA(N,P) High(t)*CW/1000
• Lower Level = TEMA(N,P) – Low(t)*CW/1000,

where:

• Upper Level – the upper line of the channel;
• Lower Level – the lower line of the channel;
• TEMA – Triple Exponential Moving Average;
• N – averaging period;
• P – applied price (Close, Open, High, Low, Median, Typical, Weighted);
• High(t) and Low (t) – the maximum and minimum prices of the current period;
• CW – channel width (vertical shift of the upper and lower lines relative to the midline).

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