It is a forex trading system based on channel. You can see up trending channel and down trending channels which are automatically drawn by this forex trading system. The main idea is to buy at the bottom of the up trending channel and sell at the top of the down trending channel. Since this forex trading system is based on the channels, it’s a trend following system. The trading signals are generated in counter trend directions as well but you shouldn’t take that trade as that trade has lower chances of winning.
The best part of this forex trading system is that there is an information box on the top right side of the chart. The box has information about the market condition, market trend, and probability. The information inside the green box will tell you if the market is around the support or around the resistance levels. It will also tell you if the market is up trending or down trending. And last but not the least, this system will tell you the probability of winning of a trade you take at the moment.
When this forex trading system is installed in your metatrader 4, your chart should look like this:
You can see green and red arrows on the main chart. Green arrows indicate buying while the red arrows indicate selling. However, not all the green and red signals are buying and selling signals. Where these arrows form matters a lot. When the green arrows form around the bottom of the channel it’s a buy signal otherwise it’s not. The case is similar in the selling positions as well.
You can see automatically drawn channels on the main chart. Be sure to not buy around the top of the channel and sell at the bottom of the channel.
- DT core
DT core indicator consists of histograms that move in positive and negative territory. You should be buying when the histogram moves in positive territory and you should be selling when the histogram is in negative territory.
Buying Conditions Using the Channel System.
- A green arrow should appear below the market price.
- The market should touch the lower trend line of the channel.
- The DT Core indicator should be in positive territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the market price touches the upper trend line.
Selling Conditions Using the Channel System.
- A red arrow should appear above the market price.
- The market should touch the upper trend line of the channel.
- The DT Core indicator should be in negative territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the market price touches the lower trend line of the channel.
Download Free Forex The Channel Strategy
Our community traders work with XM.com brokerage company. If you are thinking to open demo or real forex trading account we recommend XM. They currently offer up to 5000$ bonus on your deposit find details below: