ZenAlgo - Channel
Channel builds a volume-based price channel between two selected points. It is useful for seeing the slope of an active move, where most trading occurred inside it, and whether price is merely testing a border or has confirmed a breakout.
How to read it
Choose the start and end of the move you want to study. The channel follows that range and divides it into value and deviation levels. A rising channel describes upward structure; a falling channel describes downward structure.
Price near a border is still inside the existing structure. A confirmed close through the border is more meaningful, especially when the volume profile and recent pivots support the break. The optional ghost extension shows where the current channel would continue if its slope remained unchanged.
Lines and symbols
| Visual | Meaning |
|---|---|
| LOC | Center line of the channel |
| VAH / VAL | Upper and lower value-area boundaries |
| Deviation levels | Statistical distance from the channel center |
| Volume profile | Where the most volume traded inside the selected channel |
| HH / HL / LH / LL | Higher high, higher low, lower high, and lower low pivots |
| Faded triangle | Potential border breakout that is not yet confirmed |
| Solid triangle | Confirmed bullish or bearish border breakout |
| Ghost channel | Projection of the current slope beyond the measured range |
The slope analysis summarizes channel direction. Read it together with pivots: a rising slope with HH/HL structure is more coherent than a rising slope while price prints LH/LL.
Alerts
| Alert | When it fires | Useful for |
|---|---|---|
| Confirmed Channel Border Bull Breakout | Price confirms a break above the channel border | Watching for upside expansion |
| Confirmed Channel Border Bear Breakout | Price confirms a break below the channel border | Watching for downside expansion |
Potential faded triangles do not have their own alert. The built-in alerts intentionally wait for confirmed breakouts.