The market is in the constant movement and change. The price is raised, goes down and more and more seldom stands idle on the place (flt). Currency pairs can change according to several scenarios.
First, the raising or going down trend.
Secondly, flt – the price long time stands idle. At such moments in the foreign exchange market the calm is observed.
Thirdly, the expressed corridor of the prices is established (channel) within which borders the price moves. Channel strategy Forex provides trade for such a case.
Channel strategy Forex – one of the most popular and universal strategy of trade which are actively applied by traders of the foreign exchange market Forex. Channel strategy Forex allows to get profit within the channel of the prices operating in the market at the expense of the analysis of the measured movement of currency pairs in this corridor.
Thanks to the universality and simplicity, channel strategy Forex (on condition of accurate following and observance of rules of her use) allows to get profit even to the beginner. Nevertheless even taking into account the aforesaid, it is always necessary to remember elementary terms of trade and to close the transaction in due time as greed was and forever will remain a source of serious financial losses.
The efficiency of channel strategy Forex is in direct dependence on existence in the market in the considered time interval of a stable price band. Therefore it isn’t recommended to use such strategy at high probability of sharp change of a tendency.
Become a basis for creation of the channel three last registered an extremum. Borders of the channel consist between two parallel lines, one of which should be carried out through two points of a maximum, and the second – through a minimum point. Possibly and construction by mirror option. Extreme values which are located in shadows of candles become natural limiters of the lower and top limits of a price band. Pay attention that the distance between extrema at the same time doesn’t influence character of the schedule. If a set of candles are grouped closely to each other in so-called group extrema, then a line of border of the channel is drawn through the highest value right of them.
Signal for opening of a position – achievement of border of the channel at the movement inside with an accuracy of +-5 points. Stop with a turn will be made on reaching 50-70 points in the direction of profit. The adverse party of the channel becomes the purpose in this case.
According to channel strategy Forex at the same time can be open only one position which will contain a certain quantity of lots. After the position is open, it is expedient to concentrate the attention on the exit moment from the market. For stay and fixing of such moment of feet it is transferred to an opening point at achievement of 50 points in the direction of profit. Treyling-stop, in other words – preload on achievement of 50 points through 10 becomes the following stage.
It is very important to remember that towards a loss preload isn’t made. After the border of the channel is reached, closing of a position and opening new, but already in an opposite direction is made.
In case stop has worked towards a loss, it is necessary to carry out a turn, in other words, to open a position in an opposite direction, exposing as the purpose of 57 points now. If the second stop has worked, there is a sense to take a break in trade for several days.
The practicing traders have noticed one very curious feature of fluctuation in prices within a channel interval: after the corridor border (top or lower) makes the way sooner or later, the price is displaced on the piece close on an absolute value to width of the channel existing up to this point.
Following these enough simple rules use in trade of channel strategy Forex, you will be able systematically to get notable profit.