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Channel System is a VertexFX client side indicator. Its on high degree of accuracy allows traders to determine the direction of trends. This indicator forms a price channel for intraday trading.
The red indicator line represents the resistance level, and the green line is the level of support. When the price crosses the support or resistance level it will be a signal for opening or closing orders. To improve the efficiency of trading the indicator displays signals in form of red and green dots. Red dots are signals for Sell, as location for the point indicates the price for opening sell orders. A green dot gives signal when to Buy and at what price to make a buy order.
If display red or green dots; the price changes, then it is adviced to close the open positions. traders can also trade in the breakdown of support and resistance lines. In this case, the indicator Channel System indicates that the price has broken through the resistance level and the support and tends to progress in the same direction for some time.
Channel System indicator, is a trading strategy in a nutshell, because it uses the tactics of a release from boundaries of the aligned channel, and the boundaries themselves are used as guidelines for the proper placing of Stop Loss and Take Profit. Traders can modify the following input parameters:
Period (default = 12) - period used to calculate indicator,
UseAlert (default = 1) - this parameter can be set to 1 or 0. If true (1), the signal on the intersection of the indicator lines will display on the graph up and down arrows;
limit (default = 200) - it determines the number of bars on which to build the indicator.
Download ChannelSystem.vtl (1066 views)
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