Predictive Channels [LuxAlgo]

The Predictive Channels indicator is a real-time estimate of a trend channel. The indicator returns 2 resistances, 2 supports, and an average line.

🔶 USAGE

The Predictive Channels attempt to find a real-time estimate of an underlying linear trend in the price, the returned supports/resistances are constructed from this estimate.

The area between the price and the estimated trend is also highlighted, with a green color when the price is above the estimated trend, indicating a bullish variation relative to the trend, and a red color indicating a bearish variation.

Price deviating significantly from an estimated trend will return new channels. The Factor setting controls the allowed distance between the price and the trend estimate, with higher values allowing for greater distances and less frequent channels.

The Slope setting will affect the steepness of the channels, with lower values returning steeper channels, this can cause the price to more quickly deviate from the estimated trend, increasing the frequency at which new channels are created.

🔶 SETTINGS

• Factor: Multiplicative factor, determines the allowed distance between the price and an estimated trend before a new channel is constructed.
  
• Slope: Controls the line steepness of the channels, with lower values returning steeper lines.
  

Release Notes:

Minor changes