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indicator Rangechannel (RC) or, band channel indicator. The use of the indicator allows the trader to react in time for the price to go beyond the limits of the channel established for it. This corridor is built on the basis of the analysis of several candles, starting from the last one, as a result of which the extremes of the investigated interval are determined. They create the lines of the channel.
A sell signal occurs when the price touches the lower border and, conversely, the contact with the upper one informs about the need for a purchase. The middle line can be used as an effective and simple trend indicator. Unlike moving averages, which are built at closing prices, it is not “distracted” by small fluctuations. It will only be recalculated if the boundaries change. If the latter occurs, then it is worth seriously considering the approach of a new trend.
