SpeedChan

Leading indicator. Marks in the future two price channels – if the
price comes into the channel, then the quote changes with the speed
specified in the parameters. In these areas, price reversals are most
likely.

Two price channels are displayed – one on top, showing the
growth rate; the second one – below, shows the speed of the fall.
Channels are displayed as a solid center line and two borders drawn with
a dotted line.

In many cases, the area between the channels is not important for trading – you can paint it.

Options

• PERIOD – the number of last considered bars
• PERCENT – growth / decline rate for PERIOD
• COLOR – the color for drawing the indicator. If not specified (clrNONE), the settings from the standard panel will be used.
• CLOUD – Shading or not the area between the channels.

The default parameters are used for the H1 timeframe. Typical rate of
change of major quotes is 0.3% per day: PERIOD = 24, PERCENT = 0.3

SpeedChan properties

When the price arrives in the upward channel, it means that during the
PERIOD there are bulls whose profitability is PERCENTS and they can
close the position by starting a reversal.

When the price
reaches the center line, it means that the open purchases brought the
PERCENTS to most of the traders and the probability of a reversal is
very high.

Achievement of the price at the end of the channel
signals an impulse – all the bulls behind PERIOD make a profit of at
least PERCENTS. And a significant part of them will close the position.