PipFinite Channel Flow – A Comprehensive Review
PipFinite Channel Flow is an advanced trend and counter trend indicator designed to help traders identify potential trading opportunities. It was created by Karlo Wilson Vendiola and Pipfinite in 2016. This review will provide an in-depth analysis of PipFinite Channel Flow and how it can be used for trading.
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Overview of PipFinite Channel Flow
PipFinite Channel Flow is designed to detect channel breakouts and retracements. It functions primarily as an entry indicator by identifying trend signals and counter trend signals.
Some key features of PipFinite Channel Flow include:
- Detects channel breakouts as trend signals
- Detects channel retracements as counter trend signals
- Works on any currency pair and timeframe
- Uses a channel direction algorithm to filter the trend
- Plots dynamic support and resistance levels
- Calculates 4 types of trading signals:
- BT – Buy Trend Signal
- ST – Sell Trend Signal
- BC – Buy Counter Signal
- SC – Sell Counter Signal
- Never repaints or backpaints entry signals
- Comes with easy-to-follow trading rules
How PipFinite Channel Flow Works
PipFinite Channel Flow utilizes a unique channel direction algorithm to determine the overall trend of the market. It then plots upper and lower dynamic support and resistance levels based on recent price action.
When price breaks out above the upper channel line, PipFinite Channel Flow generates a “BT” buy trend signal. This indicates an uptrend and a potential long entry opportunity.
Conversely, when price breaks below the lower channel line, a “ST” sell trend signal is generated indicating a downtrend and a potential short entry.
Channel retracements in the opposite direction of the overall trend are marked with “BC” and “SC” counter trend signals. These present possible entries in anticipation of a resumption back in the direction of the prevailing trend.
By constantly updating the channel lines and signals, PipFinite Channel Flow is able to identify new trading opportunities as trends evolve. It works on any timeframe from 1 minute to monthly charts.
Trading with PipFinite Channel Flow
PipFinite Channel Flow can be used on its own or in combination with other indicators. Here are some suggested methods for trading with Channel Flow:
When Channel Flow generates a BT or ST signal, traders can look to enter in the direction of the breakout. Initial stop loss can be placed beyond the opposite channel line. Profit targets can be set at previous swing points or using a risk/reward ratio.
Pullback Trading
After an initial breakout, traders can look to enter on pullbacks when a BC/SC signal appears. This takes advantage of temporary retracements in the direction of the overall trend. Stop loss can be placed below the channel line on long trades or above the channel line on short trades.
Trend Following
Channel Flow can also be used to follow strong trends. Multiple BT signals in an uptrend or ST signals in a downtrend can identify a persistent trend. Traders can look to enter on retracements marked by BC/SC signals with the trend.
Confirmation with Other Indicators
The signals from Channel Flow can be confirmed with other technical analysis tools like price action patterns, moving averages, oscillators etc. This can improve accuracy of trade entries.
Risk Management
It is recommended to calculate proper position sizing and utilize stop losses on all trades. No indicator is 100% accurate, so managing risk is important.
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Benefits and Drawbacks of Using PipFinite Channel Flow
Here are some of the key benefits and potential drawbacks of using PipFinite Channel Flow:
Benefits
- Provides clear trading signals for breakouts, pullbacks, and trend following
- Dynamic support and resistance levels adapt to changing market conditions
- Works across all timeframes and currency pairs
- Can be used alone or combined with other indicators
- Easy to install and use with basic trading knowledge
- Available for MT4 and MT5 trading platforms
Drawbacks
- Requires monitoring charts for new signals to appear
- Not optimized for binary options or very short-term trading
- Works best with some price action confirmation
- Lagging signals on major reversals or trend shifts
- Repainting can occasionally occur on minor signal levels
Performance and Accuracy of Signals
Based on community feedback and live trading results, the overall performance of PipFinite Channel Flow signals appears to be quite accurate. Of course, no indicator will be 100% accurate all the time.
On average, the BT/ST breakout signals tend to perform better than BC/SC counter trend signals. The trend-following signals also have a higher accuracy during strong trending markets.
It’s important to combine Channel Flow with robust risk and money management strategies for long term trading success. This includes proper stop loss placement, position sizing, and not over-leveraging.
Many traders report 60-70% accuracy on average across all market conditions when following the trading rules for PipFinite Channel Flow. As with any indicator, real-world results can vary depending on the trader’s own skill, experience, and risk management.
Pricing for PipFinite Channel Flow
PipFinite Channel Flow is available for purchase on the MQL5 Marketplace. It comes in two editions – Standalone and All-Pair.
The Standalone license allows use on one currency pair only. It is priced at $97 USD for a lifetime license with free updates.
The All-Pair license allows simultaneous use across all currency pairs. It is prices at $197 USD for a lifetime license including updates.
Considering the potential profitability of signals, these prices offer good value compared to other commercial indicators. The All-Pair license provides the best value for active traders.
Conclusion
PipFinite Channel Flow is a high-quality indicator that provides frequent trading signals across all market conditions. It excels at identifying breakouts, pullbacks, and trends across any timeframe or currency pair.
The main benefits are quick and easy trade entry signals, constantly adaptive support/resistance levels, and combining well with other analysis methods.
Potential drawbacks include repainting issues on minor levels, lagging major reversals, and requiring active monitoring for best results.
Overall, PipFinite Channel Flow can be a valuable addition for novice to experienced traders looking for more objective entry signals. As with any indicator, traders should exercise good risk management and trade plan development when using Channel Flow.