Forex PA Channels 2 Trading Strategy is developed specially for scalpers but it can also be used 1 hour to higher timeframe charts for intraday trading purpose. This strategy has been designed for making the chart reading easier and spotting opportunities to join the existing trend successfully.
Forex PA Channels 2 Trading Strategy is a combination of price actions and trend momentum indicators. Thus, it enables you finding perfect trend based entry position that carries a higher probability of success. Because of its design and development pattern it can be commonly used in any Forex currency pair chart.
After you install Forex PA Channels 2 Trading Strategy in your mt4 platform and apply at your chart, it’ll appear as image below:
Forex PA Channels 2 Trading Strategy Overview:
- EMA: EMA stands for Exponential Moving Average. At this strategy a 3-day period EMA has been used which has been directly combined with RSI Signal indicator.
- RSI Signal: It appears as red or green arrow at the main chart window. It is a 3-day period Relative Strength Index used to signal the current trend momentum.
- Bollinger Bands: Bollinger Bands are used to measure the length of the momentum. Traders can manage to spot effective place to set the stop loss level using this indicator.
- MACD Histogram: You’ll spot this indicator at the oscillator window. It is combined with both histogram bars and a moving average line aiming to report the current trend strength and status to the traders. It is a set of 12, 17 and 8-day period moving averages.
Generally Accepted Use:
- EMA in upward direction
- RSI Signal appears as Green Arrow
- Price is above lower or middle Bollinger Band channel
- MACD Histogram is above the Zero level
- Stop loss below the lower Bollinger Band
- Take profit when RSI Signal is Red Arrow and MACD Histogram is below the Zero level
- EMA in downward direction
- RSI Signal appears as Red Arrow
- Price is below higher or middle Bollinger Band channel
- MACD Histogram is below the Zero level
- Stop loss above the higher Bollinger Band
- Take profit when RSI Signal is Green Arrow and MACD Histogram is above the Zero level
Download Free Forex PA Channels 2 Trading Strategy
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