LR Channel 4H Trading strategy

The LR Channel 4H Trading strategy was developed in 2014.

LR Channel 4H Trading strategy is based on the trend-momentum of the regression channel. Just as the name suggests it was developed for use with the H4 time frame.

The trading strategy is also limited to trading the following currency pairs: AUD/JPY, EUR/USD, GBP/USD, EUR/CHF, EUR/JPY, UDF/CHF, AUD/USD, USD/CAD, GBP/JPY and AUD/NZD.

The LR Channel 4H Trading strategy employs a number of indicators which include;

1. Exponential moving average (period 4).
2. Exponential moving average (period 72).
3. Exponential moving average (period 200).
4. Support and resistance.
5. Sinergy Bar.
6. Enlight LR Channel (38, 5).
7. En light LR Channel (0, 2).
8. Dynamic Zone Stochastic (14, 3, 3, 18).

All these indicators are combined into one template instead of loading each of the indicators individually onto the trading chart.

Fig.1. The LR Channel 4H Trading strategy.

Guidelines for using the LR Channel 4H Trading strategy

The trader should at all times ensure that he or she is trading in the direction of the trend of the market prices.

If there is an uptrend the trader can only open long positions (buy orders)  and when the market price trend is downwards,  the trader should only open short positions (sell orders).

Long positions are opened at the bottoms of the channel while the sell positions are opened at the tops of the channel.

Placing orders using the LR Channel 4H Trading strategy

• Conditions for opening a long position

For the trader to place buy (open a long position), then the flowing conditions should be satisfied:

200. The EMA 4 should be above the EMA 72 and above the EMA 200.
201. The Up market LR Channel should be pointing up

• The market price should touch or break the lower band.

That means that the Dynamic Zone Stochastic should break the lower band and re-enter into channel while moving upwards.

• The market prices should be above the formed resistance level.
• Then the color of the Heiken Ashi should be Blue.
• Conditions for opening a short position

For the trader to place sell (open a short position), then the flowing conditions should be satisfied:

200. The EMA 4 should be below the EMA 72 and below the EMA 200.
201. The Up market LR Channel should be pointing up

• The market price should touch or break the upper band.

That means that the Dynamic Zone Stochastic should break the upper band and re-enter into channel while moving downwards.

• The market prices should be below the formed resistance level.

Then the color of the Heiken Ashi should be Blue.

When to exit the orders

The trader should learn to close the orders when the colour of the Synergy candle changes.

Else, the trader can use a profit target of 60 or 100 points. But for the EUR/CHF, the profit target should be 20 – 25 points.

The stop losses should be placed on the previous swing.

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