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The indicator is built from a moving average with more or less fixed channel lines added. This is really nothing you should spend money on. I do neither know, which moving average was used nor what its settings were, but if you want to build something very similar to those channels, here is a recipe for you.
Add the Universal Keltner Channel to your chart and use it with the following settings
MA Type for midband: 2-pole Supersmoother (this is the MA selected for the center line)
MA Type for offset: SMA (this is the method for smoothing the range)
Multiplier for standard deviation: 1.5 (this is for adjusting the width of the channel)
Neutral threshold: 0 (this for defining a neutral setting for the slope)
Period for midband: 45 (period for Supersmoother)
Period for volatility offset: any large value (for example 1,000 - you want a more or less fixed offset)
Range Type: simple range (as opposed to the true range)
Smoothed channels: false (the modified Keltner Channels are already smoother than the iTunnel)
Show midband: false (not shown for iTunnel)
With the KeltnerUniversal indicator you can construct thousands of similar tunnels, it is much more versatile than the iTunnel indicator.
Below comparison of the indicators with the settings as explained above:
Thanks for this info, but i could not find any "universal" keltner channel on tradestationl. Is that different from the standard keltner channel? and if it is, where can I locate it.
- uses 27 different moving averages to select from
- can apply this to various input series
- adds/subtracts a multiple of the simple range or the true range
- has an option to smooth the outcome
- colors the average and bands according to slope
What you would need to do is to take the default Keltner Channel of tradestation and replace the simple moving average with a 2-pole Supersmoother.
Back in the day, maybe ten years ago, there was a small group of guys at the CBOT that had worked out a method that they called the "Tunnel Method". Handhelds did not have the juice at the time to run many applications from the floor but I did spend a great deal of time setting this up for a group of guys off floor. The group, of which I was a part, did have good success with this method. There where two major issues. 1) confluence around the signal line sucked and we traded ourselves silly being one way then the other waiting for clarification. 2) Unfortunately too much of our collective and leadership focus was diverted to grand scale automation, and idea whose time imo has come and gone.
I'm pretty sure the "source" of the indicator in question here is/was that original "tunnel" work. Many details are probably still available on the internet....and much of the derivative phony bologna as well.
If there is a small cadre of interested persons that could help drive the bus from a programming perspective (I imagine very basic) I would give a few hours a week to revive the old project in public as I believe it was almost complete as a viable mostly mechanical objective method.
The value points for "new" people imo would be to gain experience with the mechanical/discretionary trade off and perhaps develop those skills from around the edge rather than at the core of an idea. I did develop a quasi statistical model (other math guys will dispute) that made money just about every day. The problem again being my experience and discretion could not be adequately coded and I failed to teach it with much enthusiasm.
I hope it is because I will develop it for free and blast it out. Selling, my balls! I'll look for some screen shots and you can tell me if it is similar as I dont know anything about Jody Samules.
@wldman, I listened to a webinar that Jody presented and checked out her website but refuse to pay for her education/method. Other than that have just done some reading on the internet about this wavy tunnel concept. I'm happy to help you in any way I can.
The screen capture on my oldest machine does not go back far enough for anything but a rough idea of the tunnel basics. @vvhg @Devil Man @flipper26
I bet the tunnel here looks similar to the tunnel subject of the original post? Note that these are shots from the "development" computer, not the trading computer.