Channeller

Channeller Pro - Multi-Pivot Regression Channels with Trend Validation
What This Indicator Does
Channeller Pro automatically detects and draws price channels by connecting multiple pivot points using linear regression rather than simply connecting two points. The indicator displays parallel support and resistance lines that define the current trend channel, along with an optional mid-line for mean reversion analysis.
Channels automatically appear when valid trend conditions are met and disappear when the trend structure breaks, keeping your chart clean and showing only actionable information.
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How It Works (Methodology)
1. Multi-Pivot Linear Regression
Unlike simple channel indicators that connect only 2 pivot points, this indicator collects 3-5 pivot lows (for bullish channels) or pivot highs (for bearish channels) and calculates a least-squares linear regression line through them. This produces a statistically best-fit trendline that is more resistant to noise from a single errant pivot.
The regression calculation outputs:
- Slope: The angle/direction of the trend
- Intercept: The starting price level
- R² (coefficient of determination): A value from 0 to 1 measuring how well the pivot points align. Higher R² means the pivots form a cleaner, more reliable trendline. The default minimum is 0.70.
2. Higher-Low / Lower-High Pattern Validation
For a bullish channel to form, the indicator requires each successive pivot low to be higher than the previous pivot low (the definition of an uptrend). For bearish channels, each pivot high must be lower than the previous (downtrend structure). This filter prevents channels from forming during choppy, non-trending conditions.
3. ADX Trend Strength Filter
The indicator calculates the Average Directional Index (ADX) to measure trend strength. Channels only appear when ADX exceeds a user-defined threshold (default: 20). When ADX drops below this level, indicating the trend has weakened, channels automatically disappear. This prevents false channels during sideways/ranging markets.
4. Channel Width Calculation
Once the regression support line is established, the indicator finds the highest high (for bull channels) or lowest low (for bear channels) between the first and last pivot. A parallel line is drawn at this distance to form the opposite channel boundary.
5. Channel Respect Monitoring
The indicator tracks how price interacts with channel boundaries:
- Bounces: Price touches the boundary and reverses
- Pierces: Price closes beyond the boundary
If price pierces through a channel boundary multiple times, the channel is invalidated and removed, signaling the trend structure has broken.
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How to Use This Indicator
Identifying Trends
- A green channel (bullish) indicates an uptrend with higher lows
- A red channel (bearish) indicates a downtrend with lower highs
- The R² value in the label shows channel quality (higher = more reliable)
Trading Applications
- Trend Following: Trade in the direction of the channel slope
- Support/Resistance: Use channel boundaries as potential reaction zones
- Mean Reversion: The optional mid-line (dashed) can serve as a target for pullback entries
- Breakout Preparation: When a channel disappears, it signals the prior trend structure has ended
Reading the Labels
- "BULL R²:0.85 (4 pivots)" means a bullish channel with 85% regression fit using 4 pivot points
- Orange-colored labels indicate weaker channels (R² between 0.70-0.85)
- Green/red labels indicate stronger channels (R² above 0.85)
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Input Settings Explained
| Setting | Description |
|---------|-------------|
| Pivot Lookback Left/Right | Bars required on each side to confirm a pivot high/low |
| Min Pivots for Channel | Minimum pivot points required (more = stricter) |
| Max Pivots to Track | Maximum pivots stored (older pivots are dropped) |
| Min R² Score | Minimum regression quality (0.70 = 70% fit) |
| ADX Threshold | Minimum ADX value to show channels (20 = moderate trend) |
| Require HL/LH Pattern | Enforce higher-lows for bull, lower-highs for bear |
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What Makes This Different
This indicator combines multiple validation layers that work together:
1. Regression vs. 2-point lines: More statistically robust trendlines
2. R² quality scoring: Quantifies how clean the trend structure is
3. Pattern validation: Ensures proper trend structure (HL/LH)
4. ADX filtering: Confirms trend exists before drawing channels
5. Auto-invalidation: Channels disappear when broken, not manually
These components create a self-cleaning channel system that only displays high-probability trend channels.
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Alerts Available
- Bull/Bear Channel Formed
- Bull/Bear Channel Broken
- New Pivot High/Low Detected