Charting and Studies User Guide - CQG.com

Page 236
Channel (CHNL)
The Channel study plots two lines as an overlay on the bar chart. The two lines identify the
highest high and the lowest low which occurred during the preceding user specified period.
Characteristics & Usage
Channel is an overlay study that may be used to identify a trading range. The highest high and
the lowest low within the look back period are considered support and resistance levels.
A move above or below the Channel lines may be considered a breakout from the trading
range.
Channel is similar to the Level study found in the Functions group. The principal differences are:
• Channel identifies the highest high and lowest low in the user defined look back period.
The Level study may be used to track the highest high and lowest low with different
individual look back periods.
• Channel identifies the highest and lowest prices over the preceding period while Level
includes the current bar's prices.
• The Channel study can be marked when a user-defined condition is true.
Calculation
CHI = Highest High over Period
CLO = Lowest Low over Period
Basic Studies