Trend Channel (Shi Channel) is one of the best Forex indicator among other trend channel based technical tools. This indicator follows pure price actions with market trend directions with its trend channels to plot potential market entry signals for the traders.
This channel based indicator can be utilized by any level of traders for its simplicity of use. Newbie traders are very comfortable with this amazing trend based Forex indicator. Besides, you will be able to apply it on any currency pair window and it fits with all kind of Forex timeframe charts.
Trend Channel (Shi Channel) Overview
When you attach the indicator in your symbol window your chart will look similar to this:
Trend Channel (Shi Channel) works with 3 levels of similar distant trend lines which work as trend channel all together. The lower channel is known as the dynamic support level, upper channel is the dynamic resistance level and the mid channel works as the trend decider. This means, price be able to hold its position above the mid channel success fully will signal the continuation of the bullish trend and if closed below the mid channel then it is interpreted as further bearish thrust is underway. The most important fact is, you’ll have to target the lower channel as the long entry area and the upper channel area to go short.
Recommended Strategy: CAP Channel Indicator
Trend Channel (Shi Channel): Buy Parameters
- Price bounces upward from the lower channel level
- The respective signaling bar closes as a solid bullish candle
- Hold your long position if price breaks or holds above the mid channel
- Set stop loss below the lower channel level
- Take profit whenever price approaches the upper channel areas
Trend Channel (Shi Channel): Sell Parameters
- Price bounces downward from the higher channel level
- The respective signaling bar closes as a solid bearish candle
- Hold your short position if price breaks or holds below the mid channel
- Set stop loss above the upper channel level
- Take profit whenever price approaches the lower channel areas
Do you have for MT5 version of Trend Channel (Shi Channel)?