Another tip using this channel indicator make the channel into 4 quarters ie currently it has 2 zones ie 1 zone from bottom trend line to the middle dotted line and 2nd zone is from middle zone to top trend line .so draw exact trend lines inbetween bottom zone and top zone so u end up having 4 zones.
Basically if the candle is in zone 1 ie from bottom to top of channel u looking to buy and aim for dotted middle line ie call it cash line and vise versa from top to bottom channel u looking to sell to aim for cash line.
great technique but must trade on 4hr chart only ( all the big boys trades on 4hr charts)
I am inclined to give this a trial run, and will look at the major pairs for ideal candidates.
Hi Froggie. What are your suggested pairs for this strategy right now?
Best regards
Terry
I am giving this strategy a go with shorts on GBP/USD, GBP/CHF, GBP/JPY, and long with EUR/AUD.
What say you?
Tellboy
This strategy looks very promising, but I need to use some other tools to help me identify the best entry points. I am looking at Henry Lui’s ‘Currency Outlook’, supported by his Currency Strength Metre (CSM). This week I am looking at all USD currency pairs with the USD as the strong currency going long against the AUD, GBP, NZD, CHF and JPY as the weaker ones.
system look promising,is this system still workable ?
I am trying it out now to see how well it works.
Hi tellboy
What are your results?
This strategy works? I don’t see many comments.
Sorry for my english.
Good luck for all.
Luchian Valeriu/Romania
Anyone using this strategy? Can you please tell me your experience with it? This method looks very interesting, I want to know how successful are you using it. I won a couple of trades on the 1 hour time frame but I am not sure if that was a fluke so Please reply if you have used or using this method.
Thanks!
[B]Anyone…?[/B]
I had a successful trade with the AUD/USD pair back in May 2013 and won the best trade of the month competition with it, but got sidetracked into other stuff. I am now having another look at possible set ups for it. Here is AUD/USD as a possible candidate again. I have set an alarm to trigger when the upper channel line is touched and consider a short with a 50 pip stop and a 150 pip target.
Here’s another candidate with the EUR/GBP pair. Strength in the pound against the euro has been gaining since July with a strong downtrend in the pair on the weekly and daily charts. Here is the 4H chart with a short order alert at the upper trend line.
Here is another pair that has been showing a steady rally on the weekly and daily charts since the UK economy began to show signs of recovery in April. Negative UK economic news would push this pair back down to the 16500 level and I have set an alert at 16450 for a buy signal. It may be worth noting here that I place a lot of importance on how news influences these channels. For example, good news on UK’s manufacturing PMI on Tuesday October 3rd could push this pair above the upper channel line, in which case I would expect to go with that move in my pre-news sentiment trading strategy.
How about the GBP/JPY pair as a possible candidate? This pair has enjoyed a steady up-trend on the weekly chart since December last year, with a period of consolidation from May until September along the 15000 area. On Sept 19th it touched the 16000 mark with a new high. A bit more sideways ranging could see the pair break out and reach the previous high. I have set a buy signal at the lower channel line and the 15,800 level.
Cable reached a new high at 16400 last December. It has retraced back to 14800 twice on the weekly chart into a double bottom and since July has risen in its channel on its way back to the high of December. A double top has been created at the 16150 level, and depending on the relative strength of USD, which shows a weakness against all other currencies in the dollar index basket, this week’s news could drive cable to the previous high of 16400. I have set alarms at the 16050 level should cable retrace and at the 16150 level should it break out past its recent high.
Here is another pair that qualifies with a channel showing the weakening USD. I have set an alert on the upper channel line at 9900 to signal a short entry if USA economic data is negative. However, should the USD show signs of gaining strength then we could expect to see price break out above the upper channel. Watch the dollar strength index on Monday to see where the dollar is going in the very short term.
Price dropped below the channel and bounced off the 15750 support. The trade was entered as price re-crossed the lower channel line and almost reached 16000. Trade target of 150 pips was reached. Stop was placed at 50 pips.
A very weak USD due to due to US government’s inability to reach budget agreement and the threat of government shutdown forced AUD well above the upper channel line on Tuesday 1.10.93.
I’m getting confused with this system ( i thought it looked too easy ) Can someone put me straight?
Is this strategy still working?