Trading based on support and resistance is an ideal strategy but there are many traders who struggle to define it properly. Besides, identifying the market trend correctly is yet another challenge for the traders.
Daily Channel Indicator defines the variable market trends and also determines the market trend providing more accuracy in signals and less lagging issues.
Daily Channel Indicator demonstrates the market status in a quite simple method so that everybody can be benefited from it including the newbie traders. Moreover, this indicator can be applied to trade all kinds of forex currency pairs.
Daily Channel Indicator Overview
Download and install the Daily Channel Indicator on your forex MT4 platform. Once you’re done, find your trading chart like the image below
Daily Channel Indicator Explanation
Daily Channel Indicator stresses more on recent price action data for calculating the dynamic support/resistance levels and plotting trendlines. In general concept, its lower band is the place to enter long and the upper band is the area from where you go short.
The middle line of the indicator plots the main trendline. Price holds above the line defines the market trend as bullish and drops below the trendline when the market is in a bearish mode.
The channel gets wider means the current trend of the market is getting stronger. On the other hand, the channel squeezes narrower when the trend gets weaker and signals for a possible trend reversal.
Daily Channel: Buy Conditions
- Price is supported at the lower band area
- A solid bullish candle forms near the oversold area
- Buy triggers at the break of the respective bullish candle’s high
- Set stop loss below the lower band of the channel
- Exit long/take profit whenever price hits the upper band area
Also Read: Exness Broker Review
Daily Channel: Sell Conditions
- Price is resisted from the upper band area
- A solid bearish candle forms near the overbought area
- Sell triggers at the break of the respective bearish candle’s low
- Set stop loss above the upper band of the channel
- Exit short/take profit whenever price hits the lower band area