VS Channel Trend indicator: automatic drawing of Channels, Support and Resistance lines
One of the most important concepts for any trader is the concept of support and resistance lines and price channels in which the price moves. No trading will be effective without identifying these lines and building channels. There are many useful algorithms to facilitate this process.
One such algorithm is the VS Channel Trend indicator. This indicator automatically draws support and resistance lines on the chart and marks price channels. The indicator displays the number of constructed upper lines (resistance) and lower lines (support) in the upper right corner.
The VS Channel Trend settings are simple and have only three options.
FirstBar. This parameter determines which bar on the chart is considered by the indicator as the last bar. By default, this value is equal to one, which corresponds to the last closed bar in real-time. If this value is changed, for example, to 10, the indicator will navigate and draw lines 10 bars back.
DeltaBar. The intermediate bar for calculations. It is recommended to leave the default value.
InsLine. This parameter is responsible for displaying auxiliary trend lines on the chart.
Working with the indicator
It should be noted that the advantage of this tool is its interactivity. The indicator monitors price changes in real-time and draws actual support and resistance lines at the current moment.
The most significant price levels and possible price reversal points are the points of contact of several lines. The more lines converge at a certain point; the more significant this level will be, considered a market entry point.
In addition to trend lines, VS Channel Trend displays a vertical orange line on the chart. This is an auxiliary line, by moving which a trader can observe the changes and rebuildings that took place in history. After moving the line, refresh the graph to see the change.
VS Channel Trend very accurately and almost unmistakably determines support and resistance levels. Using this algorithm with other confirmation filters, you can achieve a high percentage of successful entries and increase the probability of profit.