While trade management and exits are more important than where a trader actually enters a trade, having an edge for why a trade is taken in the first place is absolutely key. This tool has been created to do just that, by looping over historic patterns with a percentage function, signals are generated to create high probability trade levels and exit targets.
This is the popular Donchian Channel indicator with a twist. The indicator plots potential key reversal areas based on price action.
The user can set a look back of “NBarsHigherHighs” for Bearish reversals or “NBarsLowerLows” for Bullish reversals. The default is set to 5 bars, and the indicator will look for 5 consecutive bars touching the Donchian High or Donchian Low and begin to paint the background in the direction of the potential reversal.