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technical_indicators:price_channels [2019/09/07 00:25] betseyp [Overbought Decline in Larger Downtrend] |
technical_indicators:price_channels [2022/05/10 22:07] betseyp [Suggested Scans] |
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| Price Channels are lines set above and below the price of a security. The upper channel is set at the x-period high and the lower channel is set at the x-period low. For a 20-day Price Channel, the upper channel would equal the 20-day high and the lower channel would equal the 20-day low. The dotted centerline is the midpoint between the two channel lines. Price Channels can be used to identify upward thrusts that signal the start of an uptrend or downward plunges that signal the start of a downtrend. Price Channels can also be used to identify overbought or oversold levels within a bigger downtrend or uptrend. | Price Channels are lines set above and below the price of a security. The upper channel is set at the x-period high and the lower channel is set at the x-period low. For a 20-day Price Channel, the upper channel would equal the 20-day high and the lower channel would equal the 20-day low. The dotted centerline is the midpoint between the two channel lines. Price Channels can be used to identify upward thrusts that signal the start of an uptrend or downward plunges that signal the start of a downtrend. Price Channels can also be used to identify overbought or oversold levels within a bigger downtrend or uptrend. | ||
| + | **Note:** This indicator, developed by Richard Donchian, is sometimes referred to as Donchian Channels. | ||
| ===== Calculation ===== | ===== Calculation ===== | ||
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| {{:technical_indicators:price_channels:prch-8-shch.png|Price Channels - SharpCharts}} | {{:technical_indicators:price_channels:prch-8-shch.png|Price Channels - SharpCharts}} | ||
| - | ===== Suggested Scans ===== | + | ===== Scanning for Price Channels ===== |
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| + | StockCharts members can screen for stocks based on Price Channel values. Below are some example scans that can be used for Price Channels-based signals. Simply copy the scan text and paste it into the Scan Criteria box in the [[https://stockcharts.com/def/servlet/ScanUI|Advanced Scan Workbench]]. | ||
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| + | Members can also set up alerts to notify them when a Price Channels-based signal is triggered for a stock. Alerts use the same syntax as scans, so the sample scans below can be used as a starting point for setting up alerts as well. Simply copy the scan text and paste it into the Alert Criteria box in the [[https://stockcharts.com/h-al/al|Technical Alert Workbench]]. | ||
| ==== Oversold Bounce in Larger Uptrend ==== | ==== Oversold Bounce in Larger Uptrend ==== | ||