How to get more profit with the Channels System
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This article is dedicated to new traders who are yet to master the act of Forex Trading. We’ll be looking
at how you can use the Channel tools.
The Channels are a common tool in technical analysis which is used to trace when to buy or sell. A
channel is made of Tops (Support) and Bottoms (Resistance).
Before you proceed, you must learn how to create a channel. Here is the Channel Video Tutorial that
will show you exactly how to do so.
The Channels strategy is usually used in addition to basic trading strategies. Open a chart and apply the
Linear Regression Strategy to begin. (See the Video from the link above to learn how).
With the help of the channel strategy, you will be able to open deals in the direction of the trends every
time when the channel border is reached.
The Signal to open an order occurs when price hits the zone plus or minus 5 pips from the line of the
channel. (As indicated in the Video).
After opening the first deal, you should open more deals from each point on the channel as explained
above. At the end of the trend, you will have gotten more profit. The profit of the first deal is usually
bigger.
The condition of this strategy is that you can only apply it after opening the first deal. Once you have
identified the trend correctly using the channels, then you can go ahead to open more deals.
Warning: Do not open deals before important news. So always check news updates.