The Price Channel indicator calculates the highest high and lowest low of the trailing number of bars specified by the input Length.
Lines representing the trailing highs and the trailing lows are then plotted. When a market moves above the upper band, it is a sign of market strength. Conversely, when a market moves below the lower band, it is a sign of market weakness. A sustained move above or below the channel lines may indicate a significant breakout.
Lead indicator like Stochastic can be combined with this indicator to generate Buy/Sell signals.