Raff Channel Indicator
Platform: MT4 Type: Channel Last update: September 25, 2024The Raff Channel Indicator draws a trend channel using the technique originally introduced by Gilbert Raff. The slope of the channel shows a trend direction and its boundaries are considered potential market entry points.
Closer look on the Raff Channel Indicator
The upper and lower trendlines show the maximum distance the Close Line had moved away from the axis line (middle red line). Thus, the upper and lower lines can be considered as resistance and support levels.
As a rule, most movements of the price occur within a channel. It only goes beyond the support or resistance lines only on some occasions. If the price remains outside the channel longer than usual or went far enough, it could mean a change in the trend is in the making.
Overall, the channel contains a fairly complete overview of the aggregate price movements, which allows predicting the upcoming price movement (reaction at blue and pink lines) with a high probability.
Buy Signal Example
In the example below, the slope of the channel is clearly upward. A trader should look for long trade opportunities near the pink trendline.
Sell Signal Example
In the example below, the slope of the channel is clearly downward. A trader should look for short trade opportunities near the blue trendline.
Additional notes
Depending on the settings, the Raff Channel indicator can be applied to implement various strategies for trading within a channel or trading channel boundaries. The gauge can be used standalone or in conjunction with other technical analysis tools.
It is possible to simultaneously place two instances of the indicator with different calculation intervals on one chart. In such a case, it is possible to improve the accuracy of market entries on a local trend with consideration of the global trend.
Settings
You can adjust the indicator’s settings by changing the inputs in the settings window:
