This is a trading strategy by forexchanneltrading.com. This method was established as an easy to learn and at the same time an effective flexible trading system. When trading you may opt to use it in Renko chart or without the Renko chart. This is a trading strategy is seen to be too much mechanical but it is worth using. You only have to learn how it works and how to interpret the various signals that it gives.
One of the primary rules of the Forex channel trading Renko System, is that the price have to move into or over the red or blue channel zones. A trader is only eligible to start tracking for a trade entry signal if the market prices trades into the upper red channel zone or the lower blue channel zone.
The upper red channel region and above is the sell zone while the lower blue channel area and below can is the buy zone. Therefore when prices start trading into any of the channel zones or outside any of the channel zones, this sets up the primary criterion to for a possible trade signal.
Then the next requirement before any valid signal is issued is that The Forex channel trading Renko System necessitates a green candle to have closed for a LONG trade signal to be valid and a red candle to close for a SHORT trade signal to be termed as valid. Therefore after all the conditions are met then you should only place a buy only after a bull candle closes and a sell only after a sell candle closes.
The Forex channel trading Renko System employs the use of several indicators which include the FastTMALine indicator, HeikenAshi3 indicator, Repulse 2 indicator, mFisherTransform3 indicator and the TrendWave indicator.
It also have two templates that you can choose to use. These templates are the fct1.tpl and the FCTmanual1.tpl. However the difference between the two templates is just the indicators. With the manual1.tpl you have to load the indicators after loading the template. In this article we are going to look at the fct1.tpl which come with all the indicators.
When should a trader open a position when using the Forex channel trading Renko System?
For a long position entry, the prices have to be from the blue channel zone or below and there must be a green candle that closes to trigger a buy trade signal.
Example of a buy order.
For a short position entry, the prices have to be from the red channel zone or above, then there should be a red candle that closes in order to trigger a sell trade signal.
Example of placing a sell order.
Once all these basic conditions are met, the trader should then look to the other indicators for concluding signal confirmation. Then they can confidently places their sell or buy orders.
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