How to get more profit with the Channels System

Discussion in 'Trading Systems and Strategies' started by Fx Label, Apr 23, 2016.

  1. Fx Label

    Fx Label Newbie

    51
    2
    2
    This article is dedicated to new traders who are yet to master the act of Forex Trading. We’ll be looking

    at how you can use the Channel tools.

    The Channels are a common tool in technical analysis which is used to trace when to buy or sell. A

    channel is made of Tops (Support) and Bottoms (Resistance).

    Before you proceed, you must learn how to create a channel. Here is the [URL Removed] that

    will show you exactly how to do so.

    The Channels strategy is usually used in addition to basic trading strategies. Open a chart and apply the

    Linear Regression Strategy to begin. (See the Video from the link above to learn how).

    With the help of the channel strategy, you will be able to open deals in the direction of the trends every

    time when the channel border is reached.

    The Signal to open an order occurs when price hits the zone plus or minus 5 pips from the line of the

    channel. (As indicated in the Video).

    After opening the first deal, you should open more deals from each point on the channel as explained

    above. At the end of the trend, you will have gotten more profit. The profit of the first deal is usually

    bigger.

    The condition of this strategy is that you can only apply it after opening the first deal. Once you have

    identified the trend correctly using the channels, then you can go ahead to open more deals.

    Warning: Do not open deals before important news. So always check news updates.
     
    Last edited by a moderator: Jun 7, 2016
  2. bouregbi

    bouregbi Newbie

    1
    1
    1
    thank you very much .im new in trading
     
    jacobjoe likes this.
  3. Fx Label

    Fx Label Newbie

    51
    2
    2
    You are very welcomed, I recommend you start with a demo ,practice and continue to study till you feel you can move ahead to live trading ..All the best pal :)
     
    jacobjoe likes this.
  4. myfxpt

    myfxpt Master Trader

    395
    50
    74
    I think you have this back-to-front...tops form resistance, and bottoms form support.
     
  5. Fx Label

    Fx Label Newbie

    51
    2
    2
    Ha, thanks for the quick reminder
     
  6. Fx Label

    Fx Label Newbie

    51
    2
    2
    [​IMG] [​IMG]
    This is a pictorial illustration of when to enter the market/ open a deal with regards to the channels system. Here , you only open an order or enter the market when price hits the zone plus or minus 5 pips from the line of the channel as illustrated on the images above.
     
  7. Enivid

    Enivid Administrator Staff Member

    11,731
    438
    114
    For some reason, your images do not load.
     
  8. Fx Label

    Fx Label Newbie

    51
    2
    2
    Yes it looks so, I apologize for it .
     
  9. Fx Label

    Fx Label Newbie

    51
    2
    2
    [​IMG]
    This was the pictorial illustration talked about above on when to enter or open a deal with regards to the channel system.
    Remember you only open an order or enter the market when price hits the zone plus or minus 5 pips from the line of the channel.
     
  10. Enivid

    Enivid Administrator Staff Member

    11,731
    438
    114
    Isn't that a linear regression channel?
     
  11. Fx Label

    Fx Label Newbie

    51
    2
    2
    Yes @ Envid that's a linear regression channel , this particular strategy is based on it.
     
  12. Enivid

    Enivid Administrator Staff Member

    11,731
    438
    114
    Then, it's pretty stupid. The linear regression channel takes into account all the price data you draw it upon. If the price is touching the upper or lower boundary of the channel, it means that the bounce has already happened. It's simply impossible to draw a linear regression channel in such a way that it won't have those nice bounces inside.
     

Share This Page