Channel Continuation

Channel Continuation implements the channel continuation pattern as a complete setup, not a drawing aid. It demands a prior impulse — 3+ ATR net over the preceding 20 bars — then fits parallels through confirmed pivots: two touches per side, contained closes and, by default, a countertrend slope. A decisive break with the trend projects the channel's width and the impulse's height as dotted objectives.

How to Trade the Channel Continuation?

• Continuation ▲ / ▼: a decisive close past the boundary resumes the prior trend; Width target and Measured move lines mark the objectives.
• Corrective parallel touch: a test of the parallel opposite the expected break — the entry zone.
• Trend change?: a break against the prior trend — possibly reversal, not pause.
• False break: a close back inside within 8 bars deletes the targets — exit fast.

Channel Continuation Settings

• Pivot Length (default 5): bars each side confirming the pivots.
• Min Touches Per Side (default 2): the classic minimum.
• Channel Length Min / Max (defaults 15 / 80): duration bounds.
• Parallel Tolerance % (default 25) and Touch Tolerance % (default 15): required cleanliness of the fit.
• ATR Length (default 14): normalizes the filters.
• Impulse Lookback (default 20) and Min Impulse Strength (ATR) (default 3): the prior-trend gate.
• Require Countertrend Slope (default enabled) and Min Channel Drift (ATR) (default 1): only corrective slopes pass.
• Max Retracement % (default 80) and Max Duration (x Impulse) (default 2.5): too-deep or too-long corrections expire.
• Breakout Buffer % (default 5): extra penetration for a decisive break.
• False-Break Window (default 8): bars in which a close back inside fails the break.
• Volume Filter (default disabled) with Volume Expansion (x Average) (default 1.5): the classic volume signature.
• Width Target / Measured-Move Target (default enabled): the objectives.

Frequently Asked Questions

How does this differ from a flag pattern?

Same corrective logic at a larger scale: bull and bear flags are brief pauses, while this pattern needs 15+ bars and repeated touches on both parallels. The extra duration earns it its own objectives and false-break handling.

Why must the channel slope against the trend?

A channel sloping with the move reads as the trend itself, not a pause. Disabling Require Countertrend Slope admits either slope — and with it, plain trends.

What changes when the volume filter is on?

It demands quieter trade inside the channel than during the impulse, plus breakout volume at 1.5x average; without expansion the break voids the pattern.