The Momentum-based Adaptive Channel is a unique trading tool that adjusts based on the dynamic shifts of the market, utilizing the concept of Euclidean distance. This indicator is perfect for traders who want to stay in tune with the ever-changing market conditions.
What You’ll See:
- Red Line – This represents the upper channel, giving you a clear indication of potential resistance levels.
- Blue Line – This marks the lower channel, helping you identify support levels in the market.
The gray line in the image indicates a standard Donchian Channel for comparison.
Settings You Can Customize:
- Channel Period – This is converted to the Euclidean distance, allowing you to adjust the sensitivity of the indicator.
- Volatility Factor – This determines the width of one bar, affecting how the channel reacts to price movements.
- Volatility Smoothing – This setting allows you to choose a smoothing period for the volatility, helping to filter out noise and enhance clarity.
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