Price Channel Indicator is used to show buy and sell signals in trending markets.It is constructed by drawing upper and lower boundaries on a chart at the high and low points of the price flows for a definite number of periods.
Methods of use:
1. When the weekly closing price moves up to a new n-period high it is a buy signal.
2. When the weekly closing price moves down to a new n-period low it is a sell signal.
Note: When the price moves out if its n-period range, go in the direction of this new trend.
