The Lopez Channel multi-timeframe indicator identifies the market's tendency to trade within a narrow price band.
- It is easy to understand
- Finds overbought and oversold situations
- Draws at bar opening and does not repaint
- The calculation timeframe is customizable
- The red line is the overbought price
- The green line is the oversold price
It has straightforward trading implications.
- Look for buying opportunities when the market is oversold
- Look for selling opportunities when the market is overbought