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55 lines
3.8 KiB
Markdown
55 lines
3.8 KiB
Markdown
# Channels
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> "In trending markets, ride the channel. In ranging markets, fade the edges." Unknown
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Channels define dynamic support and resistance. Upper band shows where price tends to find resistance; lower band shows support. Width measures volatility; price position within channel measures momentum and mean-reversion potential.
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## Indicator Status
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| Indicator | Full Name | Status | Description |
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| :--- | :--- | :---: | :--- |
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| [ABBER](lib/channels/abber/abber.md) | Aberration Bands | | Absolute deviation-based volatility bands. More robust than standard deviation. |
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| [ACCBANDS](lib/channels/accbands/accbands.md) | Acceleration Bands | | Volatility-based adaptive channel by Price Headley. Width adapts to momentum. |
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| APCHANNEL | Andrews' Pitchfork | =Ë | Three-line channel based on pivot points. Projects trend support/resistance. |
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| [APZ](lib/channels/apz/apz.md) | Adaptive Price Zone | | Double-smoothed EMA volatility channel by Lee Leibfarth. Adapts to recent volatility. |
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| ATRBANDS | ATR Bands | =Ë | ATR-based volatility bands around moving average. |
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| BBANDS | Bollinger Bands | =Ë | Standard deviation bands around SMA. Classic volatility channel. |
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| DCHANNEL | Donchian Channels | =Ë | Highest high and lowest low over N periods. Turtle trading foundation. |
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| DECAYCHANNEL | Decay Min-Max Channel | =Ë | Exponentially decaying min-max channel. More responsive than Donchian. |
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| FCB | Fractal Chaos Bands | =Ë | Tracks fractal highs and lows. Identifies chaos-based support/resistance. |
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| JBANDS | Jurik Volatility Bands | =Ë | JMA-based volatility bands. Low lag with controlled overshoot. |
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| KCHANNEL | Keltner Channel | =Ë | EMA with ATR bands. Smoother than Bollinger. |
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| MAENV | Moving Average Envelope | =Ë | Fixed percentage bands around moving average. Simple but effective. |
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| MMCHANNEL | Min-Max Channel | =Ë | Rolling minimum and maximum over lookback period. |
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| PCHANNEL | Price Channel | =Ë | Highest high and lowest low. Similar to Donchian. |
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| REGCHANNEL | Regression Channels | =Ë | Linear regression line with standard deviation bands. |
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| SDCHANNEL | Standard Deviation Channel | =Ë | Moving average with standard deviation bands. |
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| STARCHANNEL | Stoller Average Range Channel | =Ë | ATR-based channel around moving average. Similar to Keltner. |
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| STBANDS | Super Trend Bands | =Ë | ATR-based trend-following bands. Flips direction on breakout. |
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| UBANDS | Ultimate Bands | =Ë | Composite volatility bands using multiple measures. |
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| UCHANNEL | Ultimate Channel | =Ë | Adaptive channel using multiple volatility inputs. |
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| VWAPBANDS | VWAP Bands | =Ë | Volatility bands around VWAP. Institutional trading reference. |
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| VWAPSD | VWAP Standard Deviation Bands | =Ë | Standard deviation bands around VWAP. |
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**Status Key:** Implemented | =Ë Planned
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## Selection Guide
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| Use Case | Recommended | Why |
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| :--- | :--- | :--- |
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| Volatility breakouts | ACCBANDS, BBANDS | Width expansion signals regime change. |
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| Mean reversion | APZ, BBANDS | Band touches indicate overextension. |
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| Trend riding | DCHANNEL, KCHANNEL | Clear trend direction with dynamic support/resistance. |
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| Robust to outliers | ABBER | Absolute deviation less sensitive than standard deviation. |
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| Low-lag bands | JBANDS, APZ | JMA/double-smoothed EMA cores reduce lag. |
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| Institutional reference | VWAPBANDS | VWAP is common institutional benchmark. |
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## Channel Types
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| Type | Examples | Volatility Measure | Best For |
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| :--- | :--- | :--- | :--- |
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| Standard Deviation | BBANDS, SDCHANNEL | Ã of returns | Normal distributions |
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| Absolute Deviation | ABBER | Mean absolute deviation | Fat-tailed distributions |
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| ATR-based | KCHANNEL, STARCHANNEL | Average True Range | Trend-following |
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| Price Range | DCHANNEL, PCHANNEL | High-low range | Breakout systems |
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| Adaptive | APZ, ACCBANDS | Dynamic volatility | Regime changes |
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