Price Percentage Channel

Last modified 14:53, 5 Nov 2012

Price Percentage Channel

The Price Percentage Channel drawing tool plots a line between two user defined price points and then creates a channel by drawing parallel lines at a set percentage from either side of the channel center line.

The percentage referred to is a percentage of the price selected for the first point of the channel.

This channel tool is similar to the Regression Percentage Channel which uses a regression line as the central price line rather than a user defined line as in this case.

Position and Edit

Central Price Line

Unlike other channel based tools, the central line is simply a straight line between two price points specified by the user. The tool does not reference any price data to draw the central line nor does it alter its position or angle based on any mathematical calculation.

To draw the line position the cursor at the start date and start price and left mouse click once. Then move the cursor to the end price and end date and click again.

Note - The start price level selected does not have to be a traded price, but can be above the high or below the low for the start trading date.

Channel Lines

The channels are then drawn at a user defined percentage on either side of the center line. The default is 5% in both directions.

The distance is calculated as the user defined percentage of the Start Price added to the central price line's level for the top channel, and subtracted from the central line's level for the bottom channel.

psdrwrtolchnlpricperctg.gif

psdrwrtolchnlpricpercdialg.pngThe percentages for each channel can be individually adjusted in the Price Percentage Channel Properties dialog box. In the above example the settings were 5% for the upper channel and 3% for the lower channel.

Enter the percentage values as whole numbers in the Top Percent and Bottom Percent text entry boxes.

Properties and Format

Apart from the percentage settings, there are a number of other properties that can be adjusted by the user in the Price Percentage Channel Properties dialog box.

Double left mouse click on the lines to open the Properties dialog box, alternatively, single right mouse click to open the pop-up menu, see below, and select its first command - Properties.

The Properties dialog boxes of all Channel drawing tools share a number of features and controls. These common elements are described and explained in Common Settings for Regression Lines and Channels topic.

Pop-up Menu

The pop-up menu (single right mouse click) for Price Percentage Channel has the standard links: Properties, Cut, Copy, Delete, Lock and Help.

In addition to the standard links, the pop-up menu includes the Price Percentage Channel command.

Click this to create a parallel line.

Note - This function will create one Trendline parallel to, and the same length as, the central price line. It will not create a duplicate central Price Percentage line. The resulting line is not a Price Percentage line and will not have links to channel lines.. When you move or resize the new line it will adhere to standard trendline functionality.

Page statistics
583 view(s) and 3 edit(s)
Social share
Share this page?

Tags

This page has no classifications.

Comments

You must to post a comment.

Attachments