Given that markets spend most of their time consolidating called a trading range in a horizontal price channel, learning to trade price channels is a great addition to the toolbox of any trader — swing trader, day trader, and even position traders. Keep in mind that on the trading time frame a trend may not be evident, horizontal price channels, as price traders from support to resistance and back again, can setup great trending trades on lower time frames. This is one reason why every trader should consider a multiple time frame trading approach.
Traders should know what a trending market looks like — the price action pattern of higher highs and higher lows for an uptrend — reverse that for a down trend. A horizontal price channel may make the same trending pattern but it is done so with an obvious support and resistance zone. When price movement comes close to either extreme, price rejects and heads in the opposite direction. You can see that price appears random inside of the price channel. For the most part, taking trades anywhere but the extremes of the channel can make for some painful trading. This is a one hour Forex chart so price looks more erratic.
A daily chart will look more contained. A horizontal channel forms from a trending market but can also occur after a large momentum move in price. Traders let the large move digest in the markets until it is time to either change the trend direction or the price channel is a continuation pattern appearing in the middle of a trend.
To make it more clear, consider that once a trending pattern ceases to occur, there is a potential for a horizontal price channel to form and we have a Forex trading strategy to deal with this common price action pattern. When that happens, I can begin to utilize a Forex trading strategy designed to take profits in this type of market. A trading strategy designed for this type of price movement is straight forward.
We are looking for price to move to one of the extremes and then will look for a reversal candlestick pattern to enter a trade.
Trading Price Channels Like A Professional Forex Trader | Forex Academy
Good comment thanks for sharing! I've been trading channels for a while. I love this site and have gotten some winning strategies here. Please keep up the good work! We love what you are doing! This is a great indicator to use as a trend confirmation tool that minimizes risks for consistence profits. Hi yes I liked the Bunny channel discussion and l am thinking that your secret. No problem Allan! Well done guys!
What is A Horizontal Price Channel
This is truly amazing what you guys are doing. This indicator will save time, remove doubts and certainly allow me to be more specific with the strategy.. Thanks Julian, we do appreciate it. It saves hours of time! This indicator is coming at the right time.
I enjoy trading breakouts, but the problem I have is how to draw valid trend lines. All your free stuff is great and unique and is not available free on other sites. Keep up the good work! Thank you so much! We enjoy providing one new FREE trading strategy every week and giving it to you guys because we know it is helping! We are constantly hearing feedback from you about how the "Big Three Strategy" or the "Cypher Patters Straegy" has helped you understand a new concept about trading. Thanks for the comment and we hope this indicator will be extremely powerful for you as a trader.
Thanks for the CTI I positive that it was the missing link to my trading.
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I'm not new to the Rabbit trail strategy when you first introduced it some couple of months ago I started using it because it was very easy for me to understand and was my first time to trade with channels. I tried to get 50 pips this proved difficult. I teaked it to lower times frames my pips improved to about 25 pips plus this was a big step to as I never used to get those pips before.
So now with this CTI indicators is even easier to identify pull backs as I use support and resistance. Can't to have my own copy thanks to my mentor Casey Stubbs and his team well done for making me get some profit from trading.
Once again thanks Collin Gonye. Hey Collin! Yes I agree that sometimes 50 pips is just not possible as the strategy has a default which is why we made sure there is a setting where you can adjust it to your desired pips. Thanks for you comment! It looks pretty straightforward and easy to use but most importantly it looks profitable and i think and indicator like this will be able to generate steady profits for even novice traders like me.
Yes David it certainly can be profitable for any trader, especially one that is new to the market. Thanks for your comment! This is one indicator that I would like to add to my other indicators like the EFC; they just take trading to a whole new level. All you traders out there you have to know the Trading Strategy Team and be part of the growing family.
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Thanks Trading Strategy Guides for helping struggling traders indeed. Your teachings, strategies and all indicators that I have purchased just work indeed. Thank you so much Glad you are loving the EFC Indicator. Its a completely different strategy then the Rabbit Trail and yet just as powerful! Wish I had found this site years ago instead of spending so much time trying the same old crap as everyone else and losing money. Thanks Sam! Our site is relatively new and yet we are getting well know throughout the trading community more and more every day because traders are tried of trading blindly and are searching for great strategies.
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We are glad to help these new traders out and we are excited what the future holds for helping traders conquer the Forex market! This one seems to actually work! So many other vendors sell something that only makes them money. Yours is a great offer to actually help some people get better at what they love. Thanks again for at least giving us a chance to get better with your help!
No problem Steve! Yes it certainly does work. That is out 1 goal with our indicators. To help people trade our strategies consistently. It sure is This looks like a very straight forward method. It is probably simple enough for even a fool such as I. Your are right about one thing this is a very straight forward method to trading the market.
However, we do not agree about the fool part Thanks for the comment Joy, you are entered in the competition. Thanks for continuing to share these useful strategies, I am interested in any indicator that is not commonly available and allows me as trader to get a slightly different perspective on market activity, than the majority of traders using commonly available approaches. A channel trading indicator variation as described sounds like a great tool to have, thanks David.
This indicator is truly one-of-a-kind. Its been setting up very powerful breakout channels. This is a trade one of our team members just took using this powerful indicator Thank you for this trading strategy--extremely well explained.
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I believe that if it made a number of successful trades in a row, i might be more attentive-- however the setup can go on for days Once you see that the CTI triggered a breakout out, you simply analyze the trade and make a trading decision based on what the indicator showed you. Right here there is no breakout triggered but you could use another strategy to trade that channel and find a good possible entry. Whats great about this indicator we are finding out as we go is that you can trade inside and outside the channel.
So there is basically always a possible trade happening. The indicator would make short work of trying to identify these channels. Would look forward to that! Sure thing! What interest do you have in an indicator that would help you trade the Rabbit Trail Strategy consistently? The CTI Indicator that we developed and giving one of these away to a lucky trader In this comment section will do that for you! Comment away, we would love to hear from you!
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Hey Girish! Thanks for the question. This strategy will work in all markets on any time frame. We recommend on lower time frames lowering your target area to pips instead of With that small tweak the results are great for those scalpers out there who want to use this strategy. Channel trading is super simple with this indicator! Pretty Cool Right? Our focus will be on Forex currency pairs, but price channels can be also found on Equities, Futures, Commodities and other trading instruments.
Having said […]. If you need any more help with this strategy you can always reach us at info tradingstrategyguides.
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Thanks for the strategy! Just for clarity do I make the entry on the 15min chart or on 1 hour chart where I identified the breakout. Can the strategy be utilised by swing traders too??