Thread: Channel Strategy and Support/Resistance – My Way to Be a Better Trader

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STRATEGY: Temporalities This strategy serves in any combination of time frames. I start with two close frames: one larger (HTF)

STRATEGY: Pairs You can apply this strategy in any pair. Some pairs filter by fundamental analysis. For example, pairs with GBP have been bassist and very volatile. In those cases I use 5M/1M for scalping. Avoid too erratic pairs (up and down in each sail

STRATEGY: Capital Management Use 2.5% per operation: 2.5% of initial capital and 2.5% of profits. Most recommend not to use more than 2%. That is personal decision. I enclose capture my Excel where I carry control of operations (cleaned for this example)

STRATEGY: SL/TP The Stop Loss goes before the previous swing + spread + a couple of extra pips. This depends on the pair, time frame, etc. You can use ATR as a reference if you want (I don't use it)

CONFIGURATION In the next posts I will explain the strategy in detail. It may take me more than a day. The steps are simple and I will break them down: Find channels Identify price structures (SR

CONFIGURATION 1: Channels To find channels connect the maximum and minimum of a well-defined trend in your HTF. As I use 4H/1H, the channels I look for in 4H, sometimes in Diario if I want a wider view. An easy way to view channels: zoom away. It is not mandatory to use channels, but it improves your chances. It also helps to locate key price structures. If I operate without channel, I reduce the lotage in half (less confluence)

CONFIGURATION 2: Key Price Structure I mean support and resistance zones. Look for key structures within your HTF. When the price touches the channel, it often creates a key structure. If you see that there have already been previous touches in that area, it is confirmation. Even if the price leaves the channel, the key structure remains valid for a while. Today I did a 35 pips operation thanks to that. Then I will show that example.

CONFIGURATION 3: Entry Condition The entry condition must be given in the HTF (in my case 4H)

CONDITION 1: Retest The price must have touched a key structure (second time, not first