DBCD (Double Bottom Channel Divergence)

Indicator Description

DBCD (Double Bottom Channel Divergence) is a trend indicator that reflects market trend changes and turning points by calculating double bottom patterns and channel divergence in prices.

Function Information

• Function Name: DBCD
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 5), timeperiod2 (default: 14), timeperiod3 (default: 76), timeperiod4 (default: 5)
• Output: dbcd, mm

Calculation Principle

DBCD reflects market trend changes by calculating double bottom patterns and channel divergence in prices. When DBCD is positive, it indicates an uptrend; when DBCD is negative, it indicates a downtrend.

Application Scenarios

1. Trend direction judgment
2. Trend reversal identification
3. Divergence signal analysis
4. Trading signal generation

Usage Suggestions

1. DBCD turning from negative to positive can be seen as a buy signal
2. DBCD turning from positive to negative can be seen as a sell signal
3. Use in combination with moving averages
4. Pay attention to the use of divergence signals