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Price Channel (Upper) Indicator

Price Channels, originally developed by Ralph Nelson Elliot, were originally used to signal the completion of wave counts that were central to his Elliott Wave Theory.  Price channels are used to detect breakouts out of support or resistance lines.  The upper channel is drawn at the highest high of last N periods.  The lower channel is drawn at the lowest low of the last N periods.  If the upper channel is penetrated, this may be a sign of new buyers and further appreciation of the asset.  A penetration of the lower channel may be a sign of new selling and lower prices to come.

See Also

Price Channel (Upper) Developer Help

Price Channel (Lower)