AutoTrendChannel PRO Indicator - Detailed Explanation
Overview
The AutoTrendChannel PRO is a custom MetaTrader 4 indicator that automatically draws trend channels on your chart based on price action. It was originally created by ANG3110 and later modified by Muhammad Hamizi Jaminan (hymns). This indicator helps traders visualize the current trend and potential support/resistance levels.

Key Features
Visual Components:
Three parallel trend lines drawn in different colors:

Upper line (Bearish): Red (default) - acts as resistance

Middle line: SkyBlue (default) - acts as central equilibrium

Lower line (Bullish): Blue (default) - acts as support

Customizable Parameters:
Hours: Sets the lookback period in hours (default 24)

col_bull: Color for bullish lower line

col_mid: Color for middle line

col_bear: Color for bearish upper line

How It Works
1. Linear Regression Calculation
The indicator first calculates a linear regression line using the closing prices over the specified period (Hours parameter). This forms the mathematical foundation for the channel.

2. Peak and Trough Identification
The algorithm then:

Identifies the highest highs and lowest lows relative to the regression line

Divides the analysis period into two halves to find significant extremes

Compares the strength of highs vs. lows to determine the dominant trend direction

3. Channel Construction
Depending on whether highs or lows are more significant (f=1 or f=2), the indicator:

For f=1 (highs dominant):

Draws the upper line connecting the most significant highs

Calculates the lower line based on the deepest pullback from the upper line

Places the middle line equidistant between them

For f=2 (lows dominant):

Draws the lower line connecting the most significant lows

Calculates the upper line based on the highest rally from the lower line

Places the middle line equidistant between them

4. Dynamic Adjustment
The indicator includes an iterative process (up to 20 refinement passes) to:

Continuously improve the fit of the channel lines

Adjust for new price extremes

Ensure the channel best represents the current price action

Trading Applications
Trend Identification:

Price above middle line suggests bullish bias

Price below middle line suggests bearish bias

Support/Resistance Levels:

Upper line acts as potential resistance

Lower line acts as potential support

Middle line acts as dynamic equilibrium

Breakout Trading:

Break above upper channel may indicate strong bullish momentum

Break below lower channel may indicate strong bearish momentum

Mean Reversion:

Prices approaching upper channel may suggest overbought conditions

Prices approaching lower channel may suggest oversold conditions

Technical Notes
The indicator uses time-based calculation (Hours parameter) rather than fixed bar count

It automatically redraws when new candles form

The algorithm gives more weight to recent price action by analyzing two distinct periods (first and second halves of the lookback window)

The middle line is always drawn as a dotted line for visual distinction

Color Scheme
The default color scheme uses:

Blue for bullish elements (lower line)

SkyBlue for the middle line (neutral)

Red for bearish elements (upper line)