Channel System

[Trader Question]

I am studying the channel system in the "How To" and "Advanced Manual".

Is there a mechanical method for determining the channel width or drawing the channel wall/outer channel line?

[pldot]

Our DG software doesn't do this but you might look at the "regression" drawing tool in TradeStation, which should be helpful. You can also use the Trendline tool (and use the Parallel generating parameter, then adjust) as another method.

[Trader Question]

Sorry dumb question.. For an upmove, I used:

> trendline tool through pldots to draw the MCline
> for channel wall drew a parallel line to the MCline that goes through highest high;
> for outer channel line drew a equidistant parallel line to Mcline with same width as channel wall-->MCline

Is this in the right direction? Thanks.

[pldot]

Well it certainly gets you started in the right direction, yes, and will give you an interesting set of lines against which to measure change...