Trading strategy based on the channel

Market: ;
Indicator: self-constructed channels;
Protective Orders: StopLoss, TakeProfit, TrallingStop.

To work with this trading strategy channels are built according to to the last three extrema — линия поддержки по двум нижним точкам и параллельная ей линия сопротивления по одному верхнему максимуму, или наоборот в случае нисходящего канала. Линии строятся по максимальным и минимальным значениям, то есть по candle shadows.

Расстояние между соседними экстремумами не ограничивается. Встречаются «групповые экстремумы» — две или даже три свечи с практически одинаковыми максимумами (минимумами). Идентифицируем их как один экстремум, линию канала проводим через верх (низ) правой из них.

Opening a position occurs when reaching the border of the channel from the inside. In this case open signal возникает при попадании цены в зону +-5 пунктов от линии канала. Количество лотов постоянно в течении недели (лучше — всего месяца).

Stop order with a reversal at the opening: 50-70 pips.

Target — противоположная граница канала.

Learn more about channel strategy

Only one trading position is open at all times. After opening an order we focus on the best way out of the marketTo do this, when we get a profit of 50 pips, we move the stop order to Breakeven.

Next, we use TrailingStop at a distance of 50 points every 10 points. As the target is approached, the squeeze value decreases. The compression is made only in the direction of increasing profits, but never in the direction of decreasing. When the channel boundary is smoothly reached (currently active!), we close the position, and open a new one in the opposite direction.

When StopLoss is triggered, we open a position in the opposite direction with a target of 57 pips, i.e. we make a reversal. The principles of transaction support are identical. However, if the new trade also closes with a loss of 57 pips, it is necessary to take a break in two trading days.

This strategy allows you to clearly take money from the measured movement of the currency pair. It is not recommended to trade before the powerful news and in case of a supposed sharp change in the trend. But the main thing is to close the profit in time, do not be greedy! The strategy is designed for traders of different level of training.