Many traders get distracted by the search for the "Holy Grail" strategy. The traders would search the internet looking for the best indicator, strategy or ideas and then combine them. They would add an indicator, a filter, or whatever, until they were staring at a chart with a lot of indicators. They have created a strategy that is too complicated for them to manage.

This approach is fine. This approach is used by many seasoned traders who have made consistent profits from the market. New traders, however, find themselves overwhelmed with unnecessary information and cannot manage the pressure to make quick decisions.

Sometimes simplicity is better. Simple trading strategies, which have been proven to work by many traders but are still simple enough that many traders ignore them, can be more effective than complicated strategies.

Channel trading is one of the most fundamental strategies a trader can use. It is simple, but it is still an effective way to trade market. Channels are used by many professional traders to make money trading the market.

Binary Channel BO

Binary Channel BO indicator is a custom indicator which helps traders identify the most recent channels on any currency pair.

This indicator is very useful because it automates the process for identifying support and resistance levels. These are the foundation of a channel.

Different traders use this indicator in different ways. Some traders prefer trading breakouts from such channels. Although this is risky, it can also be very profitable. If the breakout is a fake-out, traders may lose their money. The yields can be very high if the breakout is a true breakout. These trades can be long-term trend reversals and could provide huge returns if managed well.

Others traders use a different approach. They expect price to follow the channel's support and resistance, rather than trading on breakouts. Instead, they would wait for price signs of bounce off the channel's support or resistance and then ride the trade until the trade shows signs of rebounding off the opposite channel.

Trading Strategy

This strategy uses the second approach to trading channels. This trading strategy trades on bounces from the supports and resistances of a channel.

To identify channels, we'll first use the Binary Channel BO indicator. This indicator automates the process for finding channels. It is your responsibility as a trader to verify that the channel is legitimate. In some cases, the indicator might plot a channel that does not meet your standards. Look for other trading opportunities if this is the case.

The channel plotted will be used to determine the direction of the trend. The slope of the channel will determine the trend. The trend will be considered to be uptrend if the channel is moving up. If the trend is downward, it is called a downtrend. Trades should be made in the direction of the trend. This will result in higher probability trades and a higher reward-risk ratio.

We then look for signs of a reversal by looking at bounces off the resistance or support line. This will be determined by reversal candlestick pattern and price action. As soon as the price touches the support/resistance line, a reversal pattern candlestick pattern appears, you should trade.

Indicators:

• BinaryChannel_BO default setting

Prefer Time Frames:

Currency pairs: major, minor pairs

Trade Sessions: Tokyo (London) and New York sessions

Trade Setup

Entry

• Binary Channel BO should show a channel that is sloped up.
• Prices must trend up.
• Visually verify that the channel is valid.
• Wait for the price to reach the support line of your channel.
• Based on price action, identify if the price is showing signs that a bullish trend has begun.
• After you have confirmed the conditions, place a purchase order.

Stop Loss

• Place the stop loss for the fractal under the entry candle.

Exit

• If the price reaches the resistance line or shows signs of rejection, close the trade.

Setup for Trades

Entry

• Binary Channel BO should show a channel that is sloped down.
• Prices must trend down.
• Visually verify that the channel is valid.
• Wait for the price to reach the resistance line.
• Based on price action, identify if the price is showing signs that it is experiencing a bearish trend reversal.
• After you have read and accepted the conditions, place a sale order.

Stop Loss

• Place the stop loss on fractals above the entry candle.

Exit

• If the price reaches the support line or shows signs of rejection, close the trade immediately.

Conclusion

This is one of the best ways to trade the markets. This method is often used by price action traders and naked chart traders. They would scan different charts to find support and resistance points. They would wait for the price to rise above its resistance or support lines if they could see a currency pair.

This strategy automates the search for channels and simplifies the whole process. The indicator plots all channels automatically. The trader only needs to confirm that the channel plotted automatically by the indicator meets his standards.

This strategy can be used in a channel that is valid. It produces high probability trades and could yield high yielding returns.

Forex Trading Strategy Installation Instructions

Channel Bounce Forex Trading Strategy combines Metatrader 4(MT4) indicator(s), and template.

This forex strategy aims to transform historical data and trading signals.

Channel Bounce Forex Trading Strategy allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

This information allows traders to assume additional price movements and adjust their strategy accordingly.

Forex Metatrader 4 Trading Platform

• Support available 24/7 by an international broker.
• Over 12,000 assets, including Stocks, Indices, Forex.
• Spreads and execution of orders are faster than ever with spreads starting at 0 pip.
• Start depositing now to get a bonus of up to $50,000
• Demo accounts are available to test trading strategies.

Step-by-Step RoboForex Trading Account Open Guide

How do I install Channel Bounce Forex Trading Strategy.

• Get Channel Bounce Forex Trading Strategy.zip
• *Copy the mq4 & ex4 files to your Metatrader Directory/experts /indicators /
• Copy the tpl (Template) file to your Metatrader Directory/ templates
• Your Metatrader client can be started or stopped.
• Choose the Chart and Timeframe in which you would like to test your forex strategy
• Right-click on your trading chart, hover over "Template",
• Click here to choose Channel Bounce Forex Trading Strategy
• Your Chart will show Channel Bounce Forex Trading Strategy.

*Note that not all forex strategies include mq4/ex4 files. Some templates can be integrated with the MT4 indicators from the MetaTrader Platform.

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