Forex Trend Channel Indicator




Forex Trend Channel IndicatorPrice Channel The Elliott Wave Theory identifies a repetitive pattern of 5 waves in the direction of the main trend. These waves are used to forecast the stock market shifts. The idea was given by the Dow Theory and by studies found throughout nature. Price Channels were also used as a tool for arriving at price goals. It also helped confirm the finish of wave counts by Ralph Nelson Elliott. A primary trend channel is built by depicting a main up trend line along the bottoms of waves 1 and 2 after an uptrend has been established. A parallel channel line is then depicted over the top of wave. The whole uptrend will often stay inside those 2 borders. 2 lines represented the Price Channel . It is based on measurement of min, and maximum prices for the definite number of periods. The following formulas serve as the basis for the lines of the price channel: PC Lower LL (n). It is the minimal value from the set of all Low prices (Lowest Low) within n periods. PC Upper HH (n). Its the maximal value from the set of all High prices (Highest High) within n periods The changes depend on the appearing of new max. and min. prices. The indicators lines of are dynamic lines of support and resistance. The lower trend line depicts support, the upper trend line depicts resistance. Price channels with downward slopes are bearish and channels with upward slopes are bullish. If wave 3 starts to accelerate to the point that it is higher than the upper channel line, the lines are depicted again along the top of wave 1 and the bottom of wave 2. The last channel is depicted under the 2 corrective waves (2 and 4) and as a rule over the high. The upper line may have to be drawn over the top of wave if wave 3 is either unusually strong or an extended wave. The 5th wave should come close to the upper channel line before ending up. It is advisable that semi log charts be employed along with arithmetic charts for the depicting of channel lines on long-lasting trends. It is worth selling (or short) when prices achieve basic trend line resistance in a bearish price channel and purchasing when prices achieve basic trend line support in a bullish price channel. ForexAu Any person, who is planning to enter currency trading, within the forex market must be equipped with a reliable trading platform. Seeking the assistance of a reputed platform like Metatrader can allow the traders to trade the actual markets through an automated broker, as well as have all the charts, tools and graphs at their disposal. Metatrader trading platform is well known for its wide collection of free forex indicators. These indicators are created by experienced forex traders with the intention of helping other traders to make their life easy. 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People who engage in forex trading activities should look for a great trading platform like Metatrader because of the excellent collection of free indicators it has. This will assure your chances of getting successful as a forex trader. This platform also has several unique and interesting features that make it a perfect choice for any forex trader. Therefore, spending time and money on such a platform will be a great investment done towards your future. Posts navigationChannel surfing Commercial Member Joined Nov 2008 217 Posts Ok, so a quick background. Ive traded for 13 years. EVERYTHING. Stokcks, futures, options and forex. I focus on options and forex now. In the 13 years I think Ive tried, tested and traded almost every strategy, auto system in the market. In fact, I managed a large fund that was made up of 100 automated system based in tradestation created by my partner and I. Ive also co owned a Introducing Brokerage and have personally met some of the best most powerful traders in the world. On top of that, I am VERY involved in one of the worlds largets trading and investing schools. Long story short, Ive seen it all. Ive been around the block. I know a few things for sure. 1 - Low Vol is ALWAYS, followed by high Vol. ALWAYS Remember that. And think about that when looking at the current SP value sitting at 1433 with the VIX starting to move up. HINT HINT. 2 - There are a TON of fakes out there. A lot of people are not who they say they are. Thats sad because I love this business and us good guys need to change it 3 - Things that work in trading: Price Action. Thats it. With that Price Action forms supply and demand. The best setups are after a rise or fall in price, into a supply or demand level against the longer term trend. Let me hit on 3. NZDUSD is perfect right now. Current long term (daily) trend is UP, Shorter term trend (4h) is UP, Price fell to a demand level JACKPOT BUY BUY BUY So, my strategy is simple: (I use 2 SHI channel indicators that are coded by others. They do a nice job. So THANK YOU to whoever created them) Pull up a 4H chart Add quotSonic SHI Channel MTFquot indicator with the TF changed to 1440 Add quotSHIChannelTrueModifiedVersionquot (this will plot the 4H timeframe) The trade: Both 1440 and 4H channels moving in the same direction. Wait for a move against the trend and a close outside the far side of the 4H channel or the Daily channel and into demand or supply. Wait for a close back into the 4H channel or the daily channel. Take the trade Use the low pivot as a SL and a supply and demand level as the target Simple: Picture will tell the story. I hope Take a look. I will keep posting trades. White lines are supply and demand. Orange is the Daily SHI Channel. Green is the 4H SHI Channel. Red is my BUY point. Stop is 8175 (Just below Demand) and target is 8310 (Supply). Attached Image (click to enlarge) Joined Aug 2012 Status: Member 57 Posts Could it be possible to attach also the indicators needed along with a template in order to avoid any unwanted misconfiguration Thank you in advance, Akis