Algorithm for calculation:

1. Find the highest and the lowest closing price for the stated period and check whether they located within the boundaries of the range specified.
2. If point 1 is claimed, find the highest and the lowest price value for a period, add / subtract padding and draw the boundaries of the channel.
3. If "Consider previous boundaries" parameter is true, previous channel boundaries will be considered, if there was such a channel on the previous bar.
   

Recommendations:

• The indicator was created to determine the levels for placing stop orders on the breakthrough of a flat.
  
• It should be considered that if the distance between the closings on large timeframes will be too low, the indicator may not display anything because simply will not find appropriate situations.