A method to trade Shi-channel | Forex Factory

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A method to trade Shi-channel

  • #1
  • First Post: Jul 14, 2011 1:37am Jul 14, 2011 1:37am
Shi-channel is a very popular indicator and many traders have used it to trade effectively. Every trader may has his own method to trade. Now I would like to share a method I've used for a long time with very nice profit.

Not a system, just call it simply a method.

And thank you all the authors of indiactors I use.

Image: A demo trading result only I've doubled it trading Shi-channel
Attached Image
  • #2
  • Jul 14, 2011 2:01am Jul 14, 2011 2:01am
With this method, I use two other tools to filter Shi signals:

1. 200EMA to determine a trend
2. 3 semator indicator to define an overbought/oversold point.

And the idea to trade Shi-channel is:

- Buy only when price stays above 200EMA; sell only when price stays below 200EMA
- Buy at oversold and Sell at overbought
- Buy at lower Shi-channel border and sell at upper Shi-channel

When we have a signal a timeframe (Ex. H4), switch to a lower timeframe (Ex. H1) and enter when a 1-2-3 pattern appears.

-------------

I attach the indi and template to give it a try.
Attached File(s)
File Type: rar Shi.rar   54 KB | 12,914 downloads
  • #3
  • Jul 14, 2011 2:52am Jul 14, 2011 2:52am
thx for the share, have you traded this on a live account as well or has it been only demo so far?
  • #4
  • Jul 14, 2011 3:29am Jul 14, 2011 3:29am
can you please post some charts?
  • #5
  • Jul 14, 2011 3:58am Jul 14, 2011 3:58am
I m sure SHI works but how to filter it I don't know very well. 3Level semafor is another wonderful indicator which upon proper understanding can trigger a lot of profitable trades. However, I ll employ you sir to post charts with detailed explanation on how you have been using these indicators successfully. I ll also suggest you post trades you ll be taking with this system and all of us will follow it to see how effectively it works. Thanks! May God bless you!
  • #6
  • Edited 5:05am Jul 14, 2011 4:45am | Edited 5:05am
Quoting vinafx
With this method, I use two other tools to filter Shi signals:

1. 200EMA to determine a trend
2. 3 semator indicator to define an overbought/oversold point.

And the idea to trade Shi-channel is:

- Buy only when price stays above 200EMA; sell only when price stays below 200EMA
- Buy at oversold and Sell at overbought
- Buy at lower Shi-channel border and sell at upper Shi-channel

When we have a signal a timeframe (Ex. H4), switch to a lower timeframe (Ex. H1) and enter when a 1-2-3 pattern appears.

-------------

I attach the indi and template...
Sir, how to you use 3level semafor to determine overbought and oversold? How do you handle the expansion of SHI? By expansion, I mean, if price touches the upper part of SHI, price may not reverse, it may continue on its direction and when price changes direction, SHI may not have changed from upper ward direction to downward trend. So, hoe do you solve this problem? Thanks!
  • #7
  • Jul 14, 2011 5:42am Jul 14, 2011 5:42am
Ok. this is a situation we can prepare to trade. The signals are about to appear on H4. Switch to H1 and enter at a 1-2-3 pattern.

You can sell stop GBP/USD at 1.6085; SL and TP 100 pips.
Attached Image (click to enlarge)
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  • #8
  • Jul 14, 2011 5:47am Jul 14, 2011 5:47am
With this method, 3 semator is very useful. It tries to determine an overbought/oversold point. So when we combine it with Shi-channel and 200EMA (showing trend), we can trade with very reliable signals.
  • #9
  • Jul 14, 2011 5:50am Jul 14, 2011 5:50am
Sell stop G/U; Take profit 50 pips of a half position.
Attached Image (click to enlarge)
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  • #10
  • Jul 14, 2011 5:54am Jul 14, 2011 5:54am
The signals are about to appear on H4. Switch to H1 and enter at a 1-2-3 pattern.

You can sell stop GBP/USD at 1.6085; SL and TP 100 pips.[/quote]

What do u mean by this statement? How do know, in clear terms, the time the signals are about to appear on H4? Pls can you explain this with charts?
  • #11
  • Jul 14, 2011 5:59am Jul 14, 2011 5:59am
Quoting vinafx

And the idea to trade Shi-channel is:

- Buy only when price stays above 200EMA; sell only when price stays below 200EMA
- Buy at oversold and Sell at overbought
- Buy at lower Shi-channel border and sell at upper Shi-channel

When we have a signal a timeframe (Ex. H4), switch to a lower timeframe (Ex. H1) and enter when a 1-2-3 pattern appears.

-------------
Do you wait for all these conditions to be met on 4H before you switch to 1H or how do you define the profitable entry and exit
  • #12
  • Edited 7:40am Jul 14, 2011 7:29am | Edited 7:40am
Quoting Finsight
The signals are about to appear on H4. Switch to H1 and enter at a 1-2-3 pattern.

You can sell stop GBP/USD at 1.6085; SL and TP 100 pips.
What do u mean by this statement? How do know, in clear terms, the time the signals are about to appear on H4? Pls can you explain this with charts?[/quote]
I said "about to appear" because the candle hadn't closed below 200 EMA yet at that time. A "3" signal appeared however we don't know there's a top or not. We need a 1-2-3 pattern on H1 to confirm the signal.
  • #13
  • Jul 14, 2011 9:47am Jul 14, 2011 9:47am
operating is 5 min or 1 min?
  • #14
  • Edited 4:40am Jul 15, 2011 4:40am | Edited 4:40am
Quoting vinafx
Sell stop G/U; Take profit 50 pips of a half position.
Triggered!
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  • #15
  • Jul 15, 2011 10:07am Jul 15, 2011 10:07am
Quoting vinafx
Triggered!
Hey vinafx

Like this.

Question..?? It would appear you are waiting for the 4H to touch upper or lower channel, then bounce..Move to the 1H for th 123 set up.. Then take the trade on the break of the 123..Using the 200 as the filter for long or short trades

Correct?

Thanks in advance
  • #16
  • Jul 15, 2011 10:33am Jul 15, 2011 10:33am
Show me.What show me Oversold or overbought?
I dont understand this "Buy at lower Shi-channel border and sell at upper Shi-channel"
  • #17
  • Jul 15, 2011 12:57pm Jul 15, 2011 12:57pm
Looks good but have to give it some time to make sure
  • #18
  • Jul 15, 2011 4:42pm Jul 15, 2011 4:42pm
Quoting Ravissek
Show me.What show me Oversold or overbought?
I dont understand this "Buy at lower Shi-channel border and sell at upper Shi-channel"
"3_level_ZZ_semator" indicator tries to indicate tops and bottom. When we see a "3" signal, maybe it is an overbought/oversold point.

Quote
Buy at lower Shi-channel border and sell at upper Shi-channel
I mean that we'll buy when price touches th lower border of Shi then reverses into the channel; vice versa for sell.

Happy trading
  • #19
  • Jul 15, 2011 9:47pm Jul 15, 2011 9:47pm
I've also been using the SHI Channel indicator for the past few months, coupled with counting waves, M, W, Butterfly patterns it is a useful tool...yeah there are times it blows past the top or the bottom, but if you set up some S&R lines it may help you stay out of a trade...I'm currently checking out your template, I added a wave count and zigzag lines for better visualization of the abc pattern. Interesting stuff I hope to be able to contribute.
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Click to Enlarge Name: eurusd shi channel chart 1h.gif Size: 43 KB
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  • #20
  • Jul 15, 2011 9:56pm Jul 15, 2011 9:56pm
Here is how I use the Shi indicator, not taking over the thread just another example of the indicator, you can see that if patient enough it can be used very effectively for grabbing those pips, on that note yeah the chart looks busy, but I normally have one loaded and one naked with S&Rs, I'm always playing with indicators, to much fun
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd shi channel chart 1h.gif Size: 47 KB
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