Price Channel Tools

Price channel tools are the second set of technical analsysis drawing tools available in VT Trader. VT Trader has 5 different ways that you can to draw price channels tools. PRice channels are used to try and idenrify potential areas of support and resistance.

Here is a quick run down:

Equidistant Channel: After laying down one trendline on teh chart, the equidistant channel tool created a second parralle line to that trend line that you can move around. This is the most basic way to create a trend channel.

Standard Deviation Channel: Standard deviation channel have three lines that are drawn automatically depending on measures from statistics. The middle line is a regression line from a chosen start point to an end point. The upper and lower lines are then drawn at any number of standard deviation away.

Standard Error Channel: Similar to standard deviation channel, there are three lines drawn automatically. The middle line is the regression line from a chosen start point to an end point. THe upper and lower lines are tehn drawn at any number of standard error measures away.

Raff Reggresion Line: Just like standard deviation and standard error channel, there is a middle line which is the linear regression from a certain starting point to an end point. Then, the distance between the channel lines to the regression line is the greatest distance that any one high or low price is from the regression line. This means that the candle that protrudes furthest from teh regression line, either higher or lower, sets the distance for both lines. This now does not focus on statictics, but more on the candles that are present.

Andrew's Pitchforks: Andrews' Pitchforks (a.k.a. median line studies) is also consturcted using the bars and candles as reference points as opposed to using statistic measures. You choose a trough and peak to attach the "prongs" - the upper and lower trendlines, and a third middle trendline - "the handle" is drawn inbetween the two prongs. Then, you can use the middle trendline's beginning point to twist tall three trenlines to match a low that has happened prior to the peak and trough you choose originally.