Channel Trading Guys: Come in, I need help | Forex Factory

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Channel Trading Guys: Come in, I need help

  • #1
  • First Post: Sep 17, 2013 8:15am Sep 17, 2013 8:15am
Was reading about trading the channels today and wondering where to set your take profit in such cases ? ... the other side of the channel or the middle way because it may not reach the other side because of the buying orders pressure in a selling case and vice versa. Thx in advance
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  • #2
  • Sep 17, 2013 8:55pm Sep 17, 2013 8:55pm
I prefer Adaptive Price Channels (some call them bands) to the rigid linear style channels. After extensive personal testing, I found Center of Gravity (COG indicator) and Polynomial Regression Channels the best. I like to trade with both re-painting and non-repainting versions of these style channels. I have built custom non-repainting versions of the COG indicator and Polynomial Regression Channels. I think they do an excellent job of framing up price action. I use mid-channel and far side of channel as profit taking zones in my system trades. If I enter a trade following a higher time-frame trend, I will not take profits at the mid-channel point while going for far side channel as primary target. My channel based system trades are designed for 1:3 risk-to-reward, through the design of the channel parameters and flexibility in the time-frames selected. When I adjust to different renko time-frames the channel parameters still work out to average 1:3 risk-to-reward on qualified system trades (trade from one side of main bands to the other side of main bands).
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  • #3
  • Sep 17, 2013 9:03pm Sep 17, 2013 9:03pm
Quoting COGnizant
I prefer Adaptive Price Channels (some call them bands) to the rigid linear style channels. After extensive personal testing, I found Center of Gravity (COG indicator) and Polynomial Regression Channels the best. I like to trade with both re-painting and non-repainting versions of these style channels. I have built custom non-repainting versions of the COG indicator and Polynomial Regression Channels. I think they do an excellent job of framing up price action. I use mid-channel and far side of channel as profit taking zones in my system trades....
Nice looking chart! May I ask what the bottom indi is? If not proprietary is there any chance you can upload the indis?
  • #4
  • Sep 17, 2013 9:24pm Sep 17, 2013 9:24pm
Quoting COGnizant
I prefer Adaptive Price Channels (some call them bands) to the rigid linear style channels. After extensive personal testing, I found Center of Gravity (COG indicator) and Polynomial Regression Channels the best. I like to trade with both re-painting and non-repainting versions of these style channels. I have built custom non-repainting versions of the COG indicator and Polynomial Regression Channels. I think they do an excellent job of framing up price action. I use mid-channel and far side of channel as profit taking zones in my system trades....
Sounds good. Bollinger bands can be used I guess.
So sorry for always replying late! But I got 2 Jobs!!
  • #5
  • Sep 17, 2013 9:25pm Sep 17, 2013 9:25pm
Quoting iamboston
{quote} Nice looking chart! May I ask what the bottom indi is? If not proprietary is there any chance you can upload the indis?
It's probably representing the volume. You can find it in Sonic thread.
So sorry for always replying late! But I got 2 Jobs!!
  • #6
  • Sep 17, 2013 9:33pm Sep 17, 2013 9:33pm
JUST FOR FUN
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When the Joker is in the deck.. fear not and play it well
  • #7
  • Sep 17, 2013 9:37pm Sep 17, 2013 9:37pm
Quoting Slim Buffett
JUST FOR FUN {image}
Bearish trend that ended with a bull back leg that rapidly transformed into a bullish channel then there's a break out for the bearish trend continuation and a follow candle to confirm .... that's what Al Brook would say
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  • #8
  • Sep 17, 2013 10:19pm Sep 17, 2013 10:19pm
Quoting Muhammad Ezz
{quote} Bearish trend that ended with a bull back leg that rapidly transformed into a bullish channel then there's a break out for the bearish trend continuation and a follow candle to confirm .... that's what Al Brook would say

Dude (M.E.) is going to be a great trader. ????
Soon, I may be listening to him ?

Regardless, he has a "pizzazz" and knowledge which is likely
possessed by few new traders.

Time always has the answer.

All the best.
When the Joker is in the deck.. fear not and play it well
  • #9
  • Sep 17, 2013 11:42pm Sep 17, 2013 11:42pm
Quoting iamboston
{quote} Nice looking chart! May I ask what the bottom indi is? If not proprietary is there any chance you can upload the indis?

All of my indicators are customized to work with my cannels, but I have a few good options for you that work for trend strength or price momentum indications;

- Trend Strength indicator http://codebase.mql4.com/6781

- BbSq (bbsqueeze) – OsMA http://www.forexmetatraderindicators...mt4-indicator/

- Fisher Indicator http://www.forexmetatraderindicators...her-indicator/

- PBF Squeeze (this is another workable indicator if you can find a free MT4 download)

I suggest using these indicators with renko or range charts, it does make a difference versus time charts.
  • #10
  • Sep 18, 2013 1:01am Sep 18, 2013 1:01am
Quoting Slim Buffett
{quote} Dude (M.E.) is going to be a great trader. ???? Soon, I may be listening to him ? Regardless, he has a "pizzazz" and knowledge which is likely possessed by few new traders. Time always has the answer. All the best.
Dude ... M.E. saying that like a parrot after watching a 40+ minutes video about channels and he doesn't know shit
So sorry for always replying late! But I got 2 Jobs!!
  • #11
  • Sep 18, 2013 1:03am Sep 18, 2013 1:03am
Quoting COGnizant
{quote} All of my indicators are customized to work with my cannels, but I have a few good options for you that work for trend strength or price momentum indications; - Trend Strength indicator http://codebase.mql4.com/6781 - BbSq (bbsqueeze) – OsMA http://www.forexmetatraderindicators...mt4-indicator/ - Fisher Indicator http://www.forexmetatraderindicators...her-indicator/ - PBF Squeeze (this is another workable indicator if you can find a free MT4 download) I suggest using...
Will give it a try, thx
So sorry for always replying late! But I got 2 Jobs!!
  • #12
  • Sep 18, 2013 8:45am Sep 18, 2013 8:45am
Quoting Muhammad Ezz
{quote} Sounds good. Bollinger bands can be used I guess.
I don't care for Bollinger Bands or Keltner channels to frame up price action so try out some of the channels I mentioned above. I will get some links after trading today to give you several examples of what you can use as a starting point.
  • #13
  • Sep 18, 2013 9:30am Sep 18, 2013 9:30am
Quoting COGnizant
{quote} I don't care for Bollinger Bands or Keltner channels to frame up price action so try out some of the channels I mentioned above. I will get some links after trading today to give you several examples of what you can use as a starting point.

Appreciating your effort
So sorry for always replying late! But I got 2 Jobs!!
  • #14
  • Sep 21, 2013 8:00am Sep 21, 2013 8:00am
Quoting COGnizant
{quote} I don't care for Bollinger Bands or Keltner channels to frame up price action so try out some of the channels I mentioned above. I will get some links after trading today to give you several examples of what you can use as a starting point.
Your channels look so nice what is this indicator, it look like TMA.
  • #15
  • Sep 21, 2013 9:40am Sep 21, 2013 9:40am
Quoting orionfx
{quote} Your channels look so nice what is this indicator, it look like TMA.
From my post above;

"I prefer Adaptive Price Channels (some call them bands) to the rigid linear style channels. After extensive personal testing, I found Center of Gravity (COG indicator) and Polynomial Regression Channels the best. I like to trade with both re-painting and non-repainting versions of these style channels. I have built custom non-repainting versions of the COG indicator and Polynomial Regression Channels."


TMA Bands are good too, I have built versions both painting and non-repainting. Any channel tool that can help you "frame up" the price action is what you need. What your objective should be imo, is to find a channel that will contain roughly 90% of the price action. What you do with the remaining 10% price action, at the channel lines or beyond, is to find a way to "qualify" mean reversion trades in this 10% grouping. Some argue this style is always a counter-trend trading approach (mean reversion) and I disagree - here is example of mean reversion trading with a known trend.
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  • #16
  • Sep 21, 2013 9:49am Sep 21, 2013 9:49am
The other key principal I use, or system trading rule, is to take your primary trades aligned with price momentum. This is the 10% of price action at or beyond your set channel lines. If you spend the day fighting price momentum you will have a tough time in mean reversion strategy - I learned this from good autosystem trader.
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  • #17
  • Sep 21, 2013 9:57am Sep 21, 2013 9:57am
My system trade rules are simple;

- Enter long or short with renko candle at or beyond my main upper or lower channel lines

- Only go long with green renko close - only go short with red renko close

- Enter trade if trade direction is aligned with price momentum indication

* NOTE - trades following trend are higher probability and trades against a trend tend to be lower probability. I can take both trend following and counter-trend trades but I have to understand probabilities (adjust money management accordingly).
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  • #18
  • Sep 21, 2013 10:04am Sep 21, 2013 10:04am
For my own trading, I have not found anything better than channels for identifying best buy and sell zones. Without channels my trading is average at best - with channels I do very well. I have one set of channels I built that identify only 4% to 5% of price action - when price trades outside of those channel lines I get very aggressive with trade entry. If you understand this concept then you are on your way to building yourself a simplified trade system.
  • #19
  • Sep 21, 2013 10:13am Sep 21, 2013 10:13am
Another good option is to use channels on multiple time frames. The longer time frames are the direction you want to trade. The lower time frames are your timing and heads up for entries/exits. When you have all time frames in the same direction you are golden.
  • #20
  • Sep 21, 2013 11:49am Sep 21, 2013 11:49am
Quoting JR97
Another good option is to use channels on multiple time frames. The longer time frames are the direction you want to trade. The lower time frames are your timing and heads up for entries/exits. When you have all time frames in the same direction you are golden.
Good point. On my main screens I have each pair on three different renko candle time frames. When I take trades on lower time frame charts that align with higher time frame charts there is a bump in the w:l ratio.
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