NB-channel is a visual Forex trend indicator that dynamically builds Barishpolz moving channels on the selected currency pair and timeframe.
When plotting, the NB-channel indicator finds the two nearest fractals in history and draws a line between them. On the opposite side, a parallel line is built at the extreme of the fractal. The line between the borders is the middle of the channel.
The NB Channel indicator was originally created as an addition to the Barishpolz strategy, but in practice, its application is not limited by anything, i.e., it can be easily implemented in almost all templates. The only thing that needs to be taken into account is the peculiarities of drawing channel boundaries, in particular, this indicator builds them strictly according to High / Low pivot points, and not through the open/close prices.
This tool has two parameters in the settings:
The first parameter, AllBars, is responsible for the number of candles that the indicator takes into account to find price lows and highs.
The second parameter is BarsForFract indicates the number of bars required to find the fractal. If you leave 0, then the indicator will put its values for finding fractals under each time period.
The signals of this instrument are price rebounds from the channel lines. Its upper and lower boundaries can be viewed as resistance and support levels.
The advantage of this tool is that it does not allow double interpretation of the market picture and always draws lines strictly according to the same algorithm. Also, thanks to the BarsForFract variable, a trader can find a balance between the quality of the channels and the speed of their updating. But it should be understood that this indicator is just an auxiliary tool. It is not recommended to use it without applying additional filters.
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.