569# Trend Channel System
Trend Channel ( Auto Trend Indicator)
Submit by Hermes2 22/05/2014
Trend Channel system is a manual trading strategy that was
designed to be very simple and very powerfull at the same time.
Unlike most trading systems found everywhere,this system is
tested for a long time and proved to be profitable even in worst
market conditions.
The reason for that is that was designed based on the most
powerful trading methods like trend following and wave
trading.
This system works with all time frames/pairs.
The system works with all time frames and all currencypairs.
But it’s recommendedto be used with major pairs, 15M – 30M
and 1H time frames.
It’s based on two price actions .. The first one is price’s trend. And the
second one is price’s wave.
To indentifythe trend we’re going to use three indicators:
1 – Trend Channel ( Auto Trend Indicator)
2 – Fast WPR Indicator
3 – Slow WPR Indicator
How to identify the trend ?
Up Trend: Auto trend channel shouldshow clear down
channel/angle.WPR slow/fast shouldgenerate RED bars.
Down Trend : Auto trend channelshould show clearup
channel/angle.WPR slow/fast shouldgenerateYELLOW bars.
To trade price waves, we’re going to use three indicators:
1 – Shi Channel Signals ( Red/BlueDots )
2 – Color MA Indicator( Red/BlueLine )
How to trade price waves?
When we get Red dot plus Red line = Down Trending Wave
When we see Yellow dot and Yellow line = Up Trending wave
First step is to identify the trend. Next step is to make sure that
current wave is moving in the same direction. Only then, we can
safely open a trade.
1 – We have Down TrendingChannel
2 – WPR Bars are RED
3 – We have a RED dot, plus RED line
That means accordingto current market conditionswe have a
SELL SIGNAL.
In the example...
1 – We have Up Trending Channel
2 – WPR Bars are Yellow
3 – We have a Yellow dot, plus Yellow line
That means accordingto current market conditionswe have a
BUYSIGNAL.
Exit position
When we should close the trade?
We can close the trade when we get an opposite signal or by
using Pivots targets indicator. Stop loss should be Below/Above Shi Channels Entry Dot, or last support/resistance level.
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