The indicator calculates the difference between the closing price and the average as a percentage and after that it calculates the average linear regression and then draws it in the form of a channel.
Preferably use it on 30 min or 15 min or 1 Hour or 2H time frames .
Exiting outside the upper or lower channel limits represents high price inflation, and returning inside the channel means the possibility of the price rising or falling for the average or the other limit of the channel.
Channel lines may represent places of support and resistance.
Nice indicator however I have observed, when price nears the upper blue zone, blue zone moves up further, creating confusion if I could take trade decision. Am I missing something?
Hey really cool indicator, I was wondering if I can you ask you to explain the "rate of change from the mean" function? I'm not a coder so I'm not the best at reading code. thanks anyways
rapira34c
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Great indicator. For me personally much more useful than bollinger bands. I created a local copy of this script to name the x-lines, that I can create alerts when the price is crossing those lines. It's really just a small thing but for me always a handicap when indicators don't have a title to the lines.