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.
