Price Channel with I-trend Strategy is probably one of the simplest trend-following forex trading systems you may have ever experienced. It applies only two indicators to determine the market trend and the trade entries which keeps its chart demonstration quite simple. Its trade signaling system is so easy that even a newbie trader will be able to read and apply them for real trading purposes.
Price Channel with I-trend Strategy works on all sorts of timeframe charts within the Forex Metatrader 4 trading platform. Furthermore, this system can be applied to trade all the forex currency pairs available around the financial markets.
Price Channel with I-trend Strategy Overview
After the installation of Price Channel with I-trend Strategy at the MT4 terminal, your trading chart will appear like the following image:
Price Channel with I-trend Strategy Anatomy
- Price Channel Stop V1: This singles indicator determines the direction of the upcoming trends, signals for trade entries and helps to update the stop positions of an active position at the market based on the price action changes. The rules of its application are quite similar to the Moving Averages. Price closing above its level is considered as the signal for going long along with the confirmation of the bullish trend. On the other hand, price holding its position below the indicator level represents the sell signal along the bearish trend of the market.
- iTrend: iTrend has been added as a trade signal filter of this system. It verifies the trade signals generated by Price Channel Stop V1. It plots both positive and negative bars at the same time which may sound a little tricky but it is not as complex as it looks. Its positive bars turn blue and negative bars turn red means the validity of the long entry signals. Oppositely, the positive bars turn red and the negative bars turn blue in order to validate the short entries.
Also Read: Right Approach to Fx Trading
Price Channel with I-trend Strategy: Trading Rules
- Price Channel Stop V1 appears below the price bars
- The positive bars of iTrend turns blue and the negative bars as red
- Buy triggers when both of the above conditions are met at the same time
- Set stop-loss right below the current Price Channel Stop V1 level
- Exit long/take profit whenever a price bar closes below the Price Channel Stop V1 level
- Price Channel Stop V1 appears above the price bars
- The positive bars of iTrend turns red and the negative bars as blue
- Sell triggers when both of the above conditions are met at the same time
- Set stop-loss right above the current Price Channel Stop V1 level
- Exit short/take profit whenever a price bar closes above the Price Channel Stop V1 level