Define the highest and the lowest price value for a period and check if they located within the boundaries of the range specified.
If point 1 is claimed, add / subtract padding from the found values and draw the boundaries of the channel.
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 specified range on the large timeframes will be too low, the indicator may not display anything because simply will not find appropriate situations.
