There are many modifications of the Channel Trading system.
Some people are using this channel together with zigzag indicator. What is the difficult case we should have if we are using the channel togather with zigzag?
As far as I know there are many kinds of indicators:
1. Normal one. These indicators are not painting the past and refreshing by itself with no problem.
2. Indicators which are working on historical data only. These kind of indicator is not refreshing. Because it was programmed like this especially.
3. Indicators which is valid on the current data only and not valid on historical data. These indicators are painting the past. But it was programmed like this especially.
4. Some modifications of the items 2 and 3. For example: Zigzag indicator (recent high or low is not valid and previous high or low is not valid as well), SHI_SilverTrendSig and SHI_SilverTrendSig1, Float indicator and some other indicators.
Why the people are using "non-normal" indicators?
Because of the market condition.
The "normal" indicators are estimating the market with some probability. Sometimes we can not describe the market using "normal" indicators and we can not use the "normal" indicators sometimes: they are not working in some conditions. And people are using the other kind of indicators fully understanding what they are doing. It may be many reasons: to get the more earlier signals, to estimate the recent maket condition, to forecast the future price movements and so on.
Usually, if we are using the indicators from the items 2, 3 and 4 we should use it together with at least one "normal" indicator. Otherwise we may be fully out of reality. But if we want to estimate something (market condition for example) we may use these indicators alone.
Of course if we are happy having universal indicators (normal ones which are not painting the past and refreshing by itself with no problem) it's ok. It means that we are trading during the "normal" market condition, we are not trading during the "news", and everything is going on on the classical way. The same as in the books.
Many people say: we were reading some book and understood everything. But when we start to trade the situation was very different. If you feel like this use the other kind of indicators (non-normal ones) which are taking into account the news and others.
Some people may ask me: give an example of the trading system which should use "non-normal" indicators?
Well. It is ASCTrend system. Usually people are using this system on D1 timeframe. It is standard timeframe for this system. Not intra-day. I saw the original ASCTrend software and these ASCTrend indicators are trading on D1 timeframe taking the data from esignal. These indicators are not refreshing. Do not need to.
I's just one example only.
i learned alot from this thread thankyou verymuch newdigital for all information you posted i usually look for step rsi to see overall picture on 4hr and 1hr and then decide trades from 30 minute i also tried with step ma but i dont like that indicator i also noticed that acdtrend sometimes work sometimes doesn't also zigzag is good but it's keep changing all the time however i am dedicated to improve my trading
Channel system was the first trading system in my life. If I lost some money using some EA or some other trading system I use channel system to recover initial depost. Sometimes I am using it up to now. I am permanent improving this system and I think you may adapt this system as well. To trade easy.
I still have two template (see image). But I am using High_Low v2 instead of zigzag and not using any step indicators. I am using ind-Fractals-1 as well.
This system is good in any modifications. But I am still trading inside the channel (from the border to an other border inside).
looks interesting newdigital i will try with High_Low, step indicators like rsi is my overall support resistance indicator which i love alot and i think you posted it so thanks for that wonderful indicator i am also trying to create a strategy for my self and indicators you mentioned could also help me.
newdigital what is the difference between high_low v2 and zidzags can you explain
When I was learning Zigzag trading system and posted everything here I recognized the differencies. The people who developed zigzag trading system during the 5 years evaluated many zigzag indicators to use it together with channel indicator and with fractal indicators. And they found that zigzag is changed all the time but High_Low v2 is changed sometimes only. And zigzag and High_low v2 are the two different indicators.
I do not like when some indicators are the changing all the time. Because channel indicator is changing sometimes (on the chart). But simetimes only. And this High_low v2 is changing but sometimes. It's ok.
But zigzag is changing more often. And they are different.
i see ok i will try high_low v2 and test it overall thank you for the information