Step Channel

█ OVERVIEW
"Step Channel" is a technical analysis indicator that builds a dynamic price channel based on market volatility (ATR) and a step-like logic for updating levels. It is ideal for traders using market structure analysis, price action, as well as trend-following, range-bound, and breakout strategies.
Thanks to the adjustable channel width, the indicator can be easily adapted to various instruments, timeframes, and trading styles – from scalping to swing trading.

█ CONCEPTS
The indicator is a universal trading tool that supports trend detection, trading in consolidation, and breakout-based strategies.

The key feature is the step-like update of the baseline (MID). Unlike classic moving averages:
- the MID line does not react to every candle
- it updates only after breaking a volatility-based level
- each breakout creates a new "step" in the market structure

This keeps the market structure clear, with regime changes being distinct and objective.

█ FEATURES
ATR-based dynamic channel
The channel width automatically adjusts to current volatility – widening during high-activity periods and narrowing in consolidations, ensuring constant adaptation to market conditions.

Structural MID line
Central, adaptive trend line updated in steps after a breakout.

Inner levels (IN)
The zone of typical price movement within the structure. These levels change only after a sustained breakout confirmed by candle close – this exact breakout generates the structural signals (Step UP/DOWN).

Outer levels (OUT)
An orientational zone indicating the potential reach of a strong, single price move beyond the current structure. Price never stays in this zone (levels shift immediately after breaking IN). Primarily used as:
- main take-profit levels
- dynamic SL in aggressive strategies

Structural signals
Generated exclusively at the moment of a real structure change:
- Step UP – upside breakout
- Step DOWN – downside breakout
Signals appear only on the breakout candle.

Built-in alerts
Instant notifications for:
- Step UP
- Step DOWN

█ HOW TO USE
Adding to the chart
Search in the TradingView indicators library: "Step Channel" or paste the code in Pine Editor.

Key parameter configuration:
- ATR Length – longer value = more stable structure (fewer signals)
- Inner Multiplier – sensitivity of inner levels (lower = narrower operational channel)
- Outer Multiplier – reach of outer extremes (higher = further TP)
- Price position interpretation:
- near MID → market equilibrium, potential consolidation
- in IN zone → healthy, controlled trend move
- in OUT zone → only an orientational target for extreme move (price does not stay in this zone)

█ APPLICATIONS
- Trend strategies – entries after Step UP/DOWN signal in the direction of the new trend, re-entry at MID, trailing stop along MID; generally positions only in line with the current structure direction
- Range trading – buying at lower IN/OUT and selling at upper IN/OUT in the absence of structure change
- Breakout strategies – entries on breakout candle close with volume or HTF confirmation
- Position management – SL behind MID or opposite IN, TP at OUT (full) or IN (partial)
- Scalping on low timeframes – quick trades inside the IN channel with tight SL
- Swing trading – trend filtering on HTF and precise entries on LTF after structural signal

█ NOTES
- works on all markets and timeframes
- requires individual adjustment of multipliers to the instrument and trading style
- recommended to use with additional indicators, e.g. RSI, Fibonacci, pivots