What is this indicator?
Plots the highest high and lowest low of the most recent N candles, and a break of this channel is used as a trend signal. This indicator is the foundation of many classic breakout strategies.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.