The Channel Breakout ATR is a forex trading system. It is really a very simple forex trading system. It doesn’t use too many fancy technical indicators. This forex trading system draws the channel on the main chart automatically. The main goal of this forex trading system is to enter when the channel breakout occurs. There are green, orange, and purple dots on the main chart. You should be buying/selling based on the colors of these dots. The system might be quite confusing at first but it will get easier as the time passes by.
There are certain things that you should keep in mind while trading with this system. Make sure that you choose those currency pairs to trade which are trending because channel are drawn in trending market not in ranging market.
When the Channel Breakout ATR is correctly installed on your trading platform, your chart should look like this:
There are two channels that you can see on the main chart window. One is a bigger channel which is golden color and another is a red channel. You should enter a long position when the green dots appear around the lower band of the channel and you should enter a short position when the green dots appear near to the upper band of the channel.
ADX is a very popular technical tool and it doesn’t need lengthy explanations. Here, ADX consists of three oscillators. These oscillators indicate the direction of the market. When the ADX trends higher, it’s a signal that the market is building up an uptrend momentum. Similarly, when the ADX trends lower, it’s a signal that the market is actually trending down.
Buying Conditions Using Channel Breakout ATR.
- Wait for the green dot to form below the channel.
- The ADX indicator should be above the level of 23.
- Place a long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the price breaks above the channel and a red dot appears above the price.
Selling Conditions Using Channel Breakout ATR.
- Wait for the green dot to form above the channel.
- The ADX indicator should be trending lower.
- Place a short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the price breaks below the channel and a red dot appears below the price.
Download Free Forex Channel Breakout ATR Strategy