Entering into a trade when the channel boundaries are breached with additional confirmation
Accurate trade entries are the key to a successful trading system.
Well-honed entry points aren't just a technical tool; they're your creative process in the world of finance. Every precise entry is like an architect's confident step, laying a solid and reliable foundation for the future edifice—your capital. It's the art of transforming market noise into a clear symphony of opportunities, where you're the conductor, not a casual listener. When you master this skill, every trade becomes a conscious and energetic action, filled with clarity and confidence in the future. Entry Point + Trading Idea = A Complete Trading System
You'll need precise entry points, even if you're an investor. Otherwise, you'll be caught too often by "Falling Daggers" or simply missing out on a large portion of your profits.
I offer you a simple but very profitable entry point into a position.
- Entry is made using a channel of two moving averages. The price touches the lower boundary of the channel and then closes above the upper boundary. We then place a pending stop order at a distance from the bar's high (which closed above the channel);
- To filter directions, let's add a trend indicator. Use your most effective trend indicator.
- Position closing and monitoring: We'll use STOP LOSS, TAKE PROFIT, and TRAILING STOP. All values are expressed as percentages of the current symbol price. Pending orders are held for 1 hour.
- The trading system has been tested on XAUUSD, H1.
The easiest way to plot moving averages is to use modern indicators. We'll use the Moving Average Cross Signal indicator (it's completely free and can be downloaded from the MQL Market) . The arrows mark the bars that triggered the pending order. I'm using AceTrend as a trend indicator.
Indicator parameters. All parameters are basic for moving averages, and if desired, you can create a similar channel from any averaging indicator.
input group "---=MA SETTING=---" input Smooth_Method MA_Method1 = MODE_T3; // Fast MA Mode input int Length1 = 24 ; // Fast MA input Smooth_Method MA_Method2 = MODE_T3; // Slow MA Mode input int Length2 = 24 ; // Slow MA input ARROW_MODE PaintArrow = 7 ; input Applied_price_ MA_Price1 = PRICE_HIGH_; // Fast MA Price input int Phase1 = 15 ; // Fast MA Phase input int Shift1 = 1 ; // Fast MA Shift input Applied_price_ MA_Price2 = PRICE_LOW_; // Slow MA Price input int Phase2 = 15 ; // Slow MA Phase input int Shift2 = 1 ; input CHANNEL_WIGHT_MODE ChannelMode = 1 ; // Channel Expansion Method input double ChannelWidth = 1 ; // Channel width
AceTrend indicator parameters: ready-made built-in set for XAUUSD H1.
The system shows good profits and low drawdowns. The screenshot shows examples of trades using the system. However, the trade entry point is the foundation, and it can be applied in a variety of ways.
