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Thursday, 08 December 2022
Forex-PChannel-Indicator
Forex-PChannel-Indicator

Forex-PChannel-Indicator

Watch the testing video here:

Forex Channel Indicator

 

Here’s an effective trading system to trade a forex channel. It consists of an automatic forex channel indicator and the QQE oscillator.

Chart Setup

Used MT4 indicators: ForexChannel (default settings), QQE (default settings)
Preferred time frame(s): M5, M15
Recommended trading sessions: London and US
Currency pairs: low spread pairs

Download

Download The Forex Channel Trading System.

 

The figure above is an example of the channel system in action on the 5 minute Australian Dollar/US Dollar trading chart.

It shows our proposed buy and sell entry points (arrows) and the profit target (20 pips).

A stop-loss is placed above the most recent resistance for short trades and below the most recent support for long trades.

Results: 2 wins, 1 small loss and 1 open trade.

Strategy Trading Rules

Buy conditions:

  • Forex channel points up (bullish channel)
  • QQE indicator goes back above the 50-line (red) from below

==> Open buy position. Set stop-loss slightly below the most recent support level.

Take profit: Take profit at the upper channel line (short-term resistance) or close the buy trade for 10 up to 20 pips.

Sell conditions:

  • Forex channel points down (bearish channel)
  • QQE indicator goes back below the 50-line (red) from above

==> Open sell position. Set stop-loss slightly above the most recent resistance level.

Take profit: Take profit at the lower channel line (short-term resistance) or close the sell trade for 10 up to 20 pips.

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