The IFX_PCC is a modified version of the Price (Donchian) Channel indicator. In contrast to the classical channel indicator, a computer-based PCC is built according to a percentage value of a channel deviation from a price specified by user.
An upper bound of a channel = the highest price value depending on the percentage deviation set by user (on default 2.0).
A lower bound of a channel = the lowest price value depending on the percentage deviation set by user (on default 2.0).
In the IFX_PCC indicator the prices generate signals for buying or selling an asset. These prices moving inside the channel for a long time, finally, breach its limits. In this regard, the most profitable moment for a breakdown is the situation when the candle which formed a signal completely covers the upper and the lower bound of the channel.
An important requirement for using the indicator in MetaTrader platform is the filtration of signals which appear at channels’ range breakdown by the price. It is possible to use the ADX indicator pointing to the trend’s strength together with the IFX_PCC:
- In case of the breakdown formation of the channel’s upper bound and the ADX indicator growth above the level of 30, the asset must be purchased.
- In case of the breakdown formation of the channel’s lower bound and the ADX indicator growth above the level of 30, the asset must be sold.