- Length: Number of recent closing prices used for the computation of the .
- Bins Number: Number of intervals constructed from the channel.
- Mult: Multiplicative factor for the RMSE. Controls the width of the channel.
- Src: Input source of the indicator.
The indicator is constructed by dividing the channel range into a series of intervals (bins) of equal width. We then count the number of price values falling within each interval.
If a significant number of price values fall within a specific interval then that interval can highlight a potential zone of interest within a trend.
The zone of interest is highlighted in blue.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.