Dynamic Channel Strategy is an ideal scalping or intraday trading system for short-term traders. It plots trend based trading signals on mostly regular basis but with steady win rates. Besides, for its easy signal reading and displaying information in a clear view, it has attracted many modern scalpers to follow through the strategy.
Dynamic Channel Strategy can be applied on any currency pair window and it fits best with lower time frame charts like M5 to H1. To get the most out of this strategy, you’ll must have to follow the rules and understand how it works in brief.
TMA Bands High: These levels appear above the price bar highs and treated as dynamic price resistance. We consider sell opportunities whenever price faces rejection from such levels and starts to dive further down.
Mid TMA Band: It is a single level line appears right at the middle in between TMA Bands High and Low. Price above its level signals the bullish momentum and if below the level then it is considered as bearish trend.
TMA Bands Low: These levels appear below the price bar lows and treated as dynamic price supports. We consider long opportunities whenever price gets supported from such levels and starts to go up.
Super Scalper: A powerful and one of the most reliable trend signal indicator for short-term trend based traders. It turns blue when the trend is bullish and turns yellow to validate the bearish trend signal.
The respective price bar closes as a bullish candle
Super Scalper Turns blue
Do not close the long entry if price moves above the Mid TMA Band smoothly
Stop loss below the respective signaling bar
Exit long whenever price gets rejected from TMA Bands High and Super Scalper turns yellow
Dynamic Channel Strategy: Sell Parameters
Price gets rejected from TMA Bands High and starts to move downwards
The respective price bar closes as a bearish candle
Super Scalper Turns yellow
Do not close the short entry if price moves below the Mid TMA Band smoothly
Stop loss above the respective signaling bar
Exit short whenever price gets supported from TMA Bands Low and Super Scalper turns bluish
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Arun Lama
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.