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channels and the average

Forex Strategy "Channels and average"

Strategy "Channels and mean." Basic conditions:

  • trading currency: EUR / USD
  • Trading terminal: MetaTrader (recommended)
  • View Graphics: Candlestick
  • Chart period: 30 minutes
  • indicators used: No
  • tradable lot: arbitrary, but is always constant
  • maximum number of entries into the market for the trading day:
    • the channels - 3
    • the midline - is not limited


algorithm tactics "Channels and Average»

21:00 (GMT)

  1. preparation schedule.

    Draw three horizontal lines. One of the very high value (High) of the day, the second lowest value (Low). The third line is conducted at an average price (Average) between the maximum and minimum values. (High + Low) / 2.

  2. analysis chart.

    Look location of the opening prices of the day (Open) and the closing (Close) the period under review, with respect to the resulting rectangles. There are five possible positions:

    1. LowLow (LL).
      Open and Close are located below the Average.
      Open-Average and Close-Average
      On the daily chart Candle - Doji Gravestone (inverted umbrella)

    2. HighHigh (HH).
      Open and Close are located above the Average.
      Open> Average and Close> Average
      On the daily chart Candle - Doji Dragonfly (umbrella).

    3. HighLow (HL).
      Open situated above the Average and the distance between the Open and the Average of at least 10 points.
      Close is located below the Average and the distance between the Close and the Average of at least 10 points.
      Open> Average and Close 10 and Open-Average> 10
      On the daily chart candle - Marubosu black, black candle.

    4. LowHigh (LH).
      Open is located below the Average and the distance between the Open and the Average of at least 10 points.
      Close is located above the Average and the distance between the Close and the Average of at least 10 points.
      Open Average and Close-Average> 10 and Average-Open> 10
      On the daily chart candle - Marubosu white, white candle.

    5. Average = Close (AR).
      Same as in paragraphs 2.3 and 2.4, only the Open or Close is located less than 10 points from the Average.
      abs (Average-Close) <10, abs (Average-Open) <10.
      On the daily chart Candle - Doji, Harami cross.

  3. Placement of orders.

    Depending on the results obtained above we arrange the order of options

    1. HL / LH (Playing in the breakdown channel and a rebound from the mean)
      1. stop order to sell at the lower boundary.
        Sell ??stop (Low), stop loss (Average), trailing stop (50).

      2. Put a stop
      3. order to buy at the upper boundary.
        Buy stop (High), stop loss (Average), trailing stop (50).

      4. Put a limit order
      5. to rebound from the average.
        Sell ??/ Buy limit (Average), stop loss (High / Low), trailing stop (50).


    2. HH / LL (play within the channel and the sample average)
        Put
      1. limit order to buy from the lower boundary plus the reversal stop order.
        Buy limit (Low), stop loss (Low-37), trailing stop (50).
        Sell ??stop (Low-37), stop loss (low), trailing stop (50).

      2. Put a limit
      3. sell order from the top of a reversal, plus a stop order.
        Sell ??limit (High), stop loss (High +37), trailing stop (50).
        Buy stop (High +37), stop loss (High), trailing stop (50).

      4. Put a stop order on the sample average.
        Sell ??/ Buy Stop (Average), stop loss (High / Low), trailing stop (50).

    3. AR (play within the channel).
        Put
      1. limit order to buy from the lower boundary plus the reversal stop order.
        Buy limit (Low), stop loss (Low-37), trailing stop (50).
        Sell ??stop (Low-37), stop loss (low), trailing stop (50).

      2. Put a limit
      3. sell order from the top of a reversal, plus a stop order.
        Sell ??limit (High), stop loss (High +37), trailing stop (50).
        Buy stop (High +37), stop loss (High), trailing stop (50).

      4. Put a stop order on the sample average.
        Sell ??/ Buy Stop (Average), stop loss (High / Low), trailing stop (50).
  4. 22:00 (GMT)

    Close all unfulfilled orders and not closed the previous day.

  5. Maintenance orders.
    1. When you play the breakdown channel (HL / LH), after firing one of the stop order and the formation of 30 points profit, move the stop loss point in the opening with the installation of the reversal stop orders.
      If Current Price-Buy stop (High) = 30 Then stop loss (High) and
      Sell ??stop (high), stop loss (High +37), trailing stop (50);
      If Sell stop (Low)-Current Price = 30 Then stop loss (Low) and
      Buy stop (Low), stop loss (Low-37), trailing stop (50);

    2. Avg. On average for the night are putting profit of 15 points.
      In general, the passage in the price of 15 para profit, loss set point in the discovery and warrant a reversal.
      When set to turn loss of the channel and back to breakeven after 15 para.

    3. If we move on tactics to the point of opening StopLoss and put warrant reversal inside the channel,
      then change the rules in the middle.
      That is played on the rebound - must now change, breakdown in play.

«Special" cases, the nuances

  1. order is placed at 23:30 on MT (MSK-2) or 1:30 MSK. If the price at this time is in close proximity to the Low (High), it is advisable to wait until the course moves away from the Low (High) at least 20 para. Otherwise, a warrant is not our night. The decision taken in the morning, based on the principles of tactics.

  2. In setting up the spread of orders not taken into account.

  3. Trailing Stop works through each item.

  4. If the channel is less than 90 points, then play the sample, regardless of the opening, closing and secondary. Loss at the midline.

  5. At night, place orders Take Profit - if the breakdown - 30 points, if the repulsion - 50 points, on average - 15 points. In the case of activation orders, looking for options to enter the market based on the principles of tactics.

  6. If
  7. opened on the breakdown of the channel, but has worked in the middle stop - then we are just "out of play" (if the channel is wide, the largest elk and psychology to better relax). But if it occurs at the fundamental news, it is a sin not to put TURNING order.

  8. Adjust to important news (but only on the important foundation - unemployment, GDP, etc.) - transfer the closest foot and coups.

Use this strategy at your own risk. Forex-Utility.com not responsible for any damages that may result to you when using any strategy, presented on the site. It is not recommended to use this strategy on a live account, without testing it to start a demo account.

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