Ahhh.
Well done, sir.
Iâve noticed that sometimes the market will be trending and then there is a pullback which causes the yellow EMA to crossover⌠but then price just continues to move with the trend. Also when the market is very choppy, lots of bad signals are given.
Are there confirmations you guys use for entries so a bad signal wonât be taken?
Yes. You can use the Cap channel as a good filter.
If price is already near the top of the Cap, donât enter a Buy trade.
If price is already near the bottom, donât enter a Sell trade.
Also, if price is heading toward the 200ema and its already close to it, donât enter a trade toward the 200 because the trend may end at the 200.
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ah I have noticed my fickle Order Block Breaker indicator doing the same thing!!
Even the signals from the Cap Channel repaint too.
I donât use the Cap channel signals.
Yes true! Agreed the CAP Channel signals arent reliable.
The signals look so great for the order block indicator when looking backwards, because only the accurate ones remain after the fact 
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Can anyone tell me what are the settings for the CAP channel? I am trying to create the indicator in pinescript but I donât know which are the correct settings.
Trading expectations for indicators and setups.
Signals that disappear:
I look at the signals appearing and soon after disappearing as a necessary signal update.
Just like EMAs may cross and soon after âuncrossâ, a signal may be a good one or a bad one. If the signal didnât disappear, it is lying to us. We would assume every signal ever was a good one. Better to know it was not a good signal after all.
There will never be an indicator you can consistently count on for only good signals. Maybe they give us 40% winners. We filter out some and get up to maybe 60% winners. The only way I have found to bring the winning percentage up closer to 90% or more is by managing open trades and redefining winning to mean that your account balance has increased after all of your entries on a pair are closed. If you had 5 entries and 2 lost but the 3 that won put you in overall profit, itâs a winning trade.
Indicators assist us in trading, but if they worked every time, weâd all be filthy rich and no one would lose. If no one loses, then no one wins. Itâs a zero sum game.
Indicators assist. Filters assist to assess which signals are better than others.
But even with filters, some signals will be losers.
Donât ever expect to always win.
Donât ever think youâve found the Holy Grail that will bring you riches.
Indicators are training YOU to be able to make reasonable decisions about entering a trade.
For me, I think the most important indicator on my setup is the ticks separate volume. If I want to make $100 in five minutes, and I see that indicator showing 15/0, enter a 2 lot buy trade and close after the next candle.
If I see any other indicator showing a buy signal, but the ticks indicator shows sellers are in charge, I donât enter the buy trade until itâs at least at 0/0.
For KoF: you see a large deviation between the price and the 9ema. You make an entry. Now you can wait until the ticks shows 0/0 or even a reversal in the buyers/sellers distribution before placing the second entry
Donât forget about the importance of the ticks indicator for whichever strategy you are using.
I only write this because I donât ever want to be the reason people lose or to find out people were expecting more than what is realistic about trading.
It will take many many hours, over many many months to be consistently profitable. The series of strategies discussed on this forum should get you more wins than losses as your Forex trading career grows and you gain confidence.
Treat it as your business. Treat it like you think a good business owner would. Itâs a great business. We are fortunate to be in it.
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Someone mentioned on here that itâs same as the envelope indicator https://forex-station.com/cap-channel-trading-indicator-t8473422-10.html which if you look on TV you can find quite a few of them.
Let me know if you find anything decent as I would be interested in one for TV?
Really? Why not? I find them VERY reliable and had great success with this indicator so far in Min5. In London Session! I am not too too sure about NY. And avoid mayor news ofc. From all the indicators and strategies that were discussed here, this is the only one that works for me, and it works great. I continue trading like this in December, seeing if I get the same results as this month, and in January I will take the prop firm challenge
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A good video of using the TDI.
The one I have been using for Mt4 is
TDI-With_Alerts.ex4 (45.1 KB)
Bottom oscillator is the TDI
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I placed an arrow on the chart to mark my original entry signal that earned me a few hundred pips on the D1. Some had me concerned that price would not reach the 1.1 level due to the weak Euro against the USD. It did stall for a while and I got out around the 1.07 price.
1 more little trade open to see if the trend continues based on W1 chart
It looks like the TDI red line is going to cross the yellow line soon.
How do I get this tick separate volume indicator
Hi All,
I discovered this thread roughly 1 month ago and first of all I would like to shoutout @AmericanTrader for keeping the thread going and answering countless questions from the community!
I have 1 question - I see from previous posts that the group has identified that the default signals that come with the Cap Channel indicator repaint. Does anyone know if the channel (2 lines) itself repaints? Iâm seeing some pretty impressive opportunities from simply using the Cap Channel and smoothed HA, but would like to know if backtesting will provide accurate results. Cheers!
Good combo. Easy money and on a Friday!
Is there a cousin indicator on TV for us TV people?
Iâm starting to experience this! And now I know to keep watch!