Channel Pattern Detector

Channel Pattern Detector MetaTrader indicator — detects channels according to trader's preferences and marks them on the chart. It does so by finding 3-point lines based on bars' highs and lows, then filtering out the non-paired lines and leaving only those pairs of lines, which are parallel to each other. The channels can then be used for range or breakout trading according to the trader's strategy. The indicator is able to detect ascending, descending and horizontal channels. It can work with narrow and wide, short and long channels. Traders can control sensitivity of detection via input parameters. This indicator can issue alerts (sound, visual and email) when a new channel is spotted. The indicator is available for both MT4 and MT5.

Input parameters

• Threshold (default = 0.007) — maximum threshold for deviation of the candlesticks' High/Low levels from the lines. The parameter is given as a multiplier of the price range. The higher it is the more channels will be detected.
• MinBars (default = 10) — minimum length of line in bars. Decrease its value if you want shorter channels.
• MaxBars (default = 150) — maximum length of line in bars. Increase its value if you want longer channels.
• Symmetry (default = 0.25) — a symmetry coefficient for line's middle point location. 1 = maximum symmetry, 0 = no symmetry required. The lower it is the more channels will be detected.
• PairMatchingRatio (default = 0.7) — minimum ratio for upper and lower lines' matching. 1 = perfect match, 0 = no match required. The lower it is the more channels will be detected.
• AngleDifference (default = 0.0007) — maximum angle difference for channel lines. The parameter is given as a multiplier of the price range. The higher it is the more channels will be detected.
• NamePrefix (default = "LF-") — an object name prefix that will be used by the chart objects created by Channel Pattern Detector.
• LookBack (default = 150) — a number of bars to check by this indicator. Increase its value if you want to detect older channels. Increasing this value will lead to significant decline in computer performance.
• ColorSupportUp (default = clrLimeGreen) — color of the ascending lower line of the channel.
• ColorSupportDown (default = clrRed) — color of the descending lower line of the channel.
• ColorResistanceUp (default = clrGreen) — color of the ascending upper line of the channel.
• ColorResistanceDown (default = clrMagenta) — color of the descending upper line of the channel.
• EmailAlert (default = false) — if true, an email message will be sent when a new channel is found.
• SoundAlert (default = false) — if true, a sound alert will be issued when a new channel is found.
• VisualAlert (default = false) — if true, a native MetaTrader visual alert will be issued when a new channel is found.

 

The example chart above shows three channels detected by the indicator. Two ascending channels are shown with green and lime lines. The only descending channel is shown with red and magenta lines.

It might not seem very useful when you trade a single currency pair on a single timeframe, but this indicator becomes indispensable in case you want to monitor dozens of charts for channels. While the indicator is capable of providing timely alerts, it will not show you how to trade when a channel appears. The actual usage of the detected channels is left for the trader to decide.

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Discussion

Do you have any suggestions or questions regarding this indicator? You can always discuss Channel Pattern Detector with the other traders and MQL programmers on the indicators forums.