Channel Trading Simplified

Hi
I trade EURUSD when Europe opens for a few hours and tried to update a forum on a timely basis but it was affecting my trading trying to update during the session. I am going to do an analytical breakdown of the session the following day and post it here. Hopefully some people find it useful and can make some money from it. It has worked for me and is quite simple.
Basically I don’t try and pick where the market is going, I take positions at bounce points of support and resistance. Have a look at the video for a more detailed explanation.
I hope it helps with your trading. Please feel free to leave feedback or ask any questions.

EURUSD analysis for 21st October 2015.
Mostly range trading in early Europe with a net result of plus 38 pips for the session.

Thanks for explaining this so well, I have found this to be so informative

Thanks, I’ll be keeping an eye on your posts. Very accurate.

Yes, good videos.

Keep going :slight_smile:

EURUSD Analysis for 22nd October
Finished the night up with 38 pips in about 2 hours of trading. Very quiet start to the session and really only had 2 moves in early Europe. Watch the video to see where I took positions.

I like your videos but I have a couple of questions.
Where do you leave your stop loss to begin with and how do you produce your channels?
Thanks

Hi MFC
I use a very tight stop. My standard stop loss is set at 5.5 pips. Once the trade is executed, I’ll adjust it to the next point of support or resistance.
I used to draw channels and support lines manually but I now use a MT4 tool set by Wolf Trading called proTrade. It’s much faster. I use it for all my entry triggers and to project my take profit levels.

Analysis for Friday the 23rd October. A bit more volatility saw 81 pips profit in 2 hours with a lot left on the table as I pulled the pin early on. Have a watch of the video.

Interesting levels to be watchful of, thanks for the info.

Another fairly quiet session in early Europe but gained 49 pips in 2 runs in a couple of hours.
Hope the video helps.

[QUOTE=2dogstrading;729761]Analysis for Friday the 23rd October. A bit more volatility saw 81 pips profit in 2 hours with a lot left on the table as I pulled the pin early on. Have a watch of the video.

Hi. Thanks again for the videos. I’m new to trading and picking up so much by watching them over and over. I’m usually a bit hesitant to trade once it goes parabolic. What are your thoughts?

Hi Linda

After hoping I was on the parabolic move I would generally move away until it comes back to normality. I am just looking for channel bounces and channel breaks and once you break in to a completely new area there isn’t much analysis I can do until new channels form.

Only 33 pips in profit last night as it was pretty quiet again in early Europe. I go into some more minute detail about micro channels in this video to show you the basis for a lot of my trading.

A couple of moves in early Europe saw a profit of 51 pips. Was a bit of a drift ahead of the FOMC but the channels still worked if you were patient.

Hi again. It seems like you don’t have a bias when you trade, and you talk a lot about bounce points. I find it difficult to break away from having a bias. You seem to manage trading both ways ok. Have you always been able to do this or is it a learned skill?

Hi Linda

I try not to have any opinion on market direction. I don’t pretend to know where it is going overall, I just try and find likely bounce points. I take a lot of positions to breakeven and get taken out but generally I can capture 3 or 4 moves in a couple of hours. I haven’t learned to not have a bias, once I am breakeven I don’t care as I am focusing on where to take profit if it moves and where to take an opposing position. I miss a lot of large trending moves but I am looking at taking small bites with minimal risk.

Hi
Well we had a little more volatility in early Europe yesterday. 63 pips profit with a couple of misses unfortunately.
Enjoy the video.

Hi 2dogstrading

I found your trading style and system very interesting and tested how it works. After 2 hours of trading I got the idea of the system and the rest of the day on Thursday I got 44 pips gain. Thank you for introducing the system.

Today I tested the channel trading system with USDCAD, but it didn’t work as well as with EURUSD. Also the spread is lower in EURUSD. Have you used the system with other currency pairs?

I used modified Fibonacci tool as channel tool. It worked pretty fluently. I also tested trailing stop for minimizing risk and after adjusting the pip value it seemed to do its job.

Best regards
Timo

Hi
An interesting night with a fairly decent push in EURUSD before Europe open. Managed 74 pips with a little more volatility. Enjoy the video.