Trend Channel


Trend Channel
The trend channel is a standard tool in chart analysis. It offers two parallel lines that are helpful for visualizing trends. Trading decisions may be based on the trend channel's alert function.

Trend channels may be used for visualizing:
  • strong price movements
  • resistance and support levels
  • chart patterns
  • sidewards markets
You can find the trend channel tool in the Chart Tools group in the toolbar.

Entering a Trend Channel

  1. Open a symbol chart.
  2. Click on the trend channel tool in the toolbar.
  3. Click into the chart to set the starting point of the trend channel.
  4. Keep the mouse button pressed and move the pointer to the end point of the trend channel. Release the mouse button.
You can align the anchor points of the trend channel to a certain price level. To do so, activate the Snap Mode by clicking on the magnet symbol in the toolbar. Now when you draw a trend channel in the chart, the middle line is positioned exactly at high and/or low points.

Editing a Trend Channel

  • To move the trend channel, drag it with the mouse (the mouse pointer turns into a hand symbol) and move it freely. Release the mouse button when done.
  • To move the lines of the trend channels up or down, click the center point of a line (the mouse pointer changes into a double arrow) and drag it.
  • To change the trend channel angle, click the anchor points of the channel (the mouse pointer turns into an x-y axis symbol) and drag into another position.
Note that the trend channel cannot be moved freely if the Snap Mode is active. If necessary, switch it off by clicking the magnet symbol in the toolbar.
  • You can duplicate a trend channel in three ways (see the chapter Chart Tools).
  • To extend the length of the trend channel until the right or left edge of the chart, double-click on anchor points at the right or left end of the channel.
  • When the trend channel is selected, you can edit the properties in the toolbox.
  • The alert function is available for the trend channel. To set an alert, set the Alert Mode from Disabled to one of the options (see below).
  • To delete the trend channel, right-click on it and select Delete from the context menu. Alternatively, select the trend channel and press the DEL key.

Properties

Trend Channel Properties

Distance - Here you can enter a distance between the two lines of the trend channel. The value changes if you move the lines independently. You can also directly enter the value here.

Always parallel - Select whether the lines of the trend channel are always be kept parallel. (If you change the chart display from linear to logarithmic, the drawing elements in the chart may "bend" and change their angles. In the case of trend channels, this may lead to non-parallel lines. Set the option to true to avoid this distortion.)

Extend Left/Extend Right - Select whether the lines are to be extended to the left and/or right until the edge of the chart.

Graphic Properties

The following properties can be set for the trend line tool:

Color - Here you can select a color for the lines.

Width - Here you can set a line width by entering a number.

Style - Here you can select a line style, e.g. solid or dotted.

Shadow - Here you can set a shadow for emphasizing the lines with a 3D effect. Four settings are available.

Fill Color - Here you can select a color and opacity for the channel area.

Label - Here you can set the value label for the last data point to visible or hidden. The label is only displayed when the trend line is drawn through, below or above the last data point (candle, bar etc.). In Tradesignal you can also specifiy the location at which the label should be displayed.

Alert Properties

The trend channel tool can be used with various kinds of alerts.

Alert Direction - Here you can select from the list whether crossings of all types lead to alerts or only crossings in a certain direction.

Alert Mode - Here you can select an alert mode from the list. Select whether every crossing is considered or only one crossing per trading period or trend line.

Alert Name - Here you can specify a name for alerts generated by this tool. It will be included in the signal field of the alert.

Alert Trigger - Here you can select when an alert should be triggered.
  • Crossed: Triggers when the price crosses the tool, e.g. goes from below the tool to above the tool
  • Hit or Crossed: Same as above, but also triggers when the price merely hits the tool. This setting is useful for a Point&Figure Chart.
  • Break-in/Break-out: Treats the tool not as two separate lines but as a channel instead and triggers an alert, when the price breaks into or out of the tool's channel.
For further information on alert modes, see the chapter Alerts.