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Channel Trading: Discussing the possibilities

  • #1
  • First Post: Mar 24, 2012 12:50pm Mar 24, 2012 12:50pm
This is an open discussion on how to best utilize this trend channel indicator to maximize pips. Feel free to use alone or with your preferred indicator/system and share your perspective.


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Thanks to Godim for these indicators, he has a method to apply a gann fann on top of this which I am still learning to do properly.

You can see in this example a clearly defined channel, logical entry points would be when price is in the outer blue or red bands. I find this thing extremely interesting and with the proper filtering can form the basis of many different strategies. More to come this week with live examples of my approach using elements of gann and VSA.
Attached File(s)
File Type: mq4 ^-^_WC_NLR.mq4   26 KB | 5,099 downloads
File Type: mq4 ^-^_MurreyMath.mq4   8 KB | 3,886 downloads
Skype: heliosphan187
  • #2
  • Mar 24, 2012 12:53pm Mar 24, 2012 12:53pm
On the above example, now appears to be a great spot to enter long this pair. I will wait until the first H4 candle closes above the gann line before entry.
Attached File(s)
File Type: ex4 ###Gann_HiLo_Activator_v2###.ex4   2 KB | 1,927 downloads
Skype: heliosphan187
  • #3
  • Mar 24, 2012 6:10pm Mar 24, 2012 6:10pm
here's an interesting chart on 4HR gold

notice the high number of VSA climax or churn bar near the channel edges.
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Skype: heliosphan187
  • #4
  • Mar 24, 2012 6:50pm Mar 24, 2012 6:50pm
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Here is daily gold with the channel projection turned on, notice how we've gone from an uptrend to a sideways to down trend now.
Skype: heliosphan187
  • #5
  • Mar 24, 2012 8:41pm Mar 24, 2012 8:41pm
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  • #6
  • Mar 24, 2012 9:19pm Mar 24, 2012 9:19pm
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cad looks like its close to reversing downward here according to this, we should find out if it's right this week.
Skype: heliosphan187
  • #7
  • Mar 24, 2012 10:29pm Mar 24, 2012 10:29pm
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Found a version of the hi-lo indicator someone has updated, looks interesting on certain pairs
Attached File(s)
File Type: mq4 Gann T3 high-low activator bars.mq4   5 KB | 2,770 downloads
File Type: mq4 Gann T3 high-low activator.mq4   6 KB | 2,671 downloads
Skype: heliosphan187
  • #8
  • Edited Mar 26, 2012 3:32am Mar 25, 2012 10:42pm | Edited Mar 26, 2012 3:32am
The channel indicator looks like an offshoot of i-Regr, which is a polynomial regression function.

Some folk believe that it's impossible to profit using a repainting indy. I disagree, but I nonetheless believe it's important to keep in mind — if you're performing a 'visual backtest' — that the channel would have plotted differently at the time the historical candles appeared at the right side of the chart. Or conversely, the repainting makes the channel fit itself around price a lot better than it does in real time.

The higher the polynomial order, and/or the lower the number of candles in the lookback window, the more responsive the indy is to price movement, and also the greater the repainting effect.

I modified the original i_Regr indy to include a historical_shift parameter (modified version is attached). This shows you what the curve would have looked like N candles ago.

Incidentally, the same channel is used in Mostafa Belkhayate's 'MBFX' commercial package, for whatever it might be worth. He also uses a proprietary oscillator to time his entries.

More info on Polynomial Regression in my posts in this thread.

FWIW,
David
Attached File(s)
File Type: mq4 i-Regr.mq4   95 KB | 2,779 downloads
  • #9
  • Mar 26, 2012 12:00am Mar 26, 2012 12:00am
kind of reminds me of that forex profit predictior software that is 2k
  • #10
  • Mar 26, 2012 12:48am Mar 26, 2012 12:48am
Quoting hanover
The channel indicator looks like an offshoot of i-Regr, which is a polynomial regression function.

Some folk believe that it's impossible to profit using a repainting indy. I disagree, but I nonetheless believe it's important to keep in mind — if 'visual backtesting' — that the channel would have plotted differently at the time the historical candles appeared at the right side of the chart. Or conversely, the repainting makes the indy fit price a lot better than it does in real time.

The higher the...
You got a big brain David. Hehe.
  • #11
  • Mar 26, 2012 10:55am Mar 26, 2012 10:55am
Thanks for the Dave it is very appreciated. I did noticed the similarites with to the iregr indicator. I figured there would have to be some repainting involved. My main interest in this is using it in combination with the Gann Hi-Low activator. I have been trading successfully using that within a system. However, if the trend is about to consolidate then this can be a problem for the hi-lo activator because its really a trend indicator. With this, I can be sure just to take the gann line crossovers near the edge of the channel and not in the middle of it where consolidation is more likely.

I will also look further into what you have provided here, thanks again.

Quoting hanover
The channel indicator looks like an offshoot of i-Regr, which is a polynomial regression function.

Some folk believe that it's impossible to profit using a repainting indy. I disagree, but I nonetheless believe it's important to keep in mind — if you're performing a 'visual backtest' — that the channel would have plotted differently at the time the historical candles appeared at the right side of the chart. Or conversely, the repainting makes the channel fit itself around price a lot better than it...
Skype: heliosphan187
  • #12
  • Edited 7:43pm Mar 26, 2012 11:00am | Edited 7:43pm
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Now this is interesting. While flipping from 15 min to h4 the 15 min stayed on the chart and this is the result. It would be interesting to have the option to overlay timeframes upon eachother
Skype: heliosphan187
  • #13
  • Edited 6:11pm Mar 26, 2012 5:52pm | Edited 6:11pm
Looks very interesting.
Definetly will check it out.
I'm newb in these scripting for meta trader
maybe you could give me an idea about how can I apply it on the platform ? (mt4)
Thanks in advance,
David.
  • #14
  • Mar 26, 2012 6:56pm Mar 26, 2012 6:56pm
Hello David welcome to the crazy world of forex. Make sure you demo trade for as many months as you can withstand before going live.

You can find instructions here on compiling and placing indicators.

http://webcache.googleusercontent.co...&ct=clnk&gl=us

Quoting Davidyel
Looks very interesting.
Definetly will check it out.
I'm newb in these scripting for meta trader
maybe you could give me an idea about how can I apply it on the platform ? (mt4)
Thanks in advance,
David.
Skype: heliosphan187
  • #15
  • Mar 26, 2012 8:00pm Mar 26, 2012 8:00pm
Amazing how many EA's and indicators have their origins here on FF!!

Quoting tommbstone
kind of reminds me of that forex profit predictior software that is 2k
Skype: heliosphan187
  • #16
  • Apr 11, 2012 6:35pm Apr 11, 2012 6:35pm
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The aussies are coming..

this thing finally started to move up off the daily channel bottom.

Gotta love this pair for the fact its dollar neutral and both are commodity based so it can trade on technicals.
Skype: heliosphan187
  • #17
  • Apr 11, 2012 7:59pm Apr 11, 2012 7:59pm
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  • #18
  • Apr 18, 2012 2:14pm Apr 18, 2012 2:14pm
this looks quite interesting not sure why anyone hasn't really posted here..
  • #19
  • Edited 8:04pm Apr 18, 2012 7:25pm | Edited 8:04pm
Thanks I think it is. It seems that this kind of channel strategy will work best with various non-usd cross pairings.


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Technically a long looks good here. The CAD has better interest rate expectations than the aud so for fundamental reasons I see limits, short term buy.

edit: hearing china may cut RRR rate, basically a bank lending rate, this could cause aud to shoot up and offset gillard's announcement on cutting rates

Quoting Dyekid217
this looks quite interesting not sure why anyone hasn't really posted here..
Skype: heliosphan187
  • #20
  • Apr 18, 2012 7:46pm Apr 18, 2012 7:46pm
cadjpy looks like a much stronger trade, CAD is currently my preferred trading vehical outside the major usd pairs. if you follow ichimoku it's also looking very strong on that system

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