If you’re diving into the world of trading, the Momentum-based Adaptive Channel is a tool you’ll want to have in your arsenal. This innovative indicator, based on the Euclidean distance, is designed to dynamically adjust to the ever-changing market conditions.
How It Displays:
- Red Line — This represents the upper channel.
- Blue Line — This indicates the lower channel.
The gray line represents the standard Donchian channel.
Settings You Should Know:
- Channel Period: This is converted to the Euclidean distance, which is essential for accurate readings.
- Volatility Factor: This determines the width of one bar, giving you a clearer picture of price fluctuations.
- Volatility Smoothing: This setting allows you to smooth out the volatility over a certain period, making your analysis more reliable.
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