This indicator will alert you when a candle goes above or below the price action channel (PAC) but only on the first or second candle after a colour change in candle.

When price is above the price action channel that is a bullish sign, when price is below the PAC that is a bearish sign.

The idea is that a sudden change in price is a cause to investigate further price action moving in that direction so the indicator aims to identify reversal

Scalping strategy that works on 5 min chart and aims to gain 10 pips. Do not act on every signal. Further investigation is required, for example by looking at RSI oversolf and overbought levels. For example, at an oversold area, a buy signal is more valid

Open-source script

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.


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