Channel breakout as a reliable way to open a position

Opening a position is an important element of profitable trading. It often makes sense to do it purely mechanically, since it is a technical element. After determining the strategy, doubts and reflections usually lead to lost profits.

An effective, but at the same time simple way to enter is when the channel of two averages is broken. We will enter a long position when the price opened below the channel, and then closed above the channel within three bars. Short positions will be the complete opposite. Here is how it looks in practice.

To determine the entry, we will take an indicator in the form of 2 moving averages, with the ability to signal a channel breakout.

Here are the indicator settings from the previous screenshot.

A good entry is not yet a guarantee of super-profitable trading, but it is one of the first, mandatory blocks of your profit.

Good luck and big income!