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

CONDITION 2: Breaking and reversing The price breaks the key structure and tests it again. It can break channel and structure at the same time. This is what Wyckoff calls “throwback” and usually announces the beginning of a strong trend. You can investigate Wyckoff if you want to better understand the phases of the market. A good place to start: http://stockcharts.com/articles/wyckoff/

CONDITION 3: Continuation Similar to condition 2, but without previous reference to the left. There is no regression to structure, it is pure continuation after an impulse.

REASON TO ENTER Condition 1 and 2: You can enter aggressive or conservative. Condition 3: You enter directly when breaking. Aggressive: Enveloping candle in HTF (4H)

Finalized strategy. My last 15 operations between October 25 and 28: 14 won, 1 lost. Almost $90 of demo profit of $400, risking maximum 2% per trade. Maybe it was lucky. I will create a new demo account this weekend and try to replicate it on Monday. After that, I will only show operations in real. This weekend posted today’s operations.

Wow, excellent explanation and images help a lot. I also operate channels sometimes. I wonder if including SR over months/years would add up to your system. I noticed you put a lot of emphasis on HTF, even for entry. So, what's the LTF for? Thank you again for sharing.

On the higher S+R levels, I just checked the USDCAD in 4H with channel. Marking a support/resistance 20 years ago, it clearly shows how the price respects it. First it bounced several times, then broke it and now uses it as a support. It is still inside the channel. Very interesting.

Does anyone else really see those patterns so clear or am I the only one who has to force his eyes as if it were Matrix? Sometimes it takes a lifetime to find a clear structure and you see them even with zoom out. Anyway, thanks for explaining it in so much detail. I’m going to force myself to practice more with clean graphics because so much indicator has me blind.

I tried the strategy yesterday at EURJPY 1H/15M and it worked perfect. It gave me a 2:1 in a clean input after breaking structure. I’m liking the simplicity of the system. I’ve already left the indicators and I’m focusing more on price reading, as you say.

I'm starting to suspect that operating channels has more logic than all the combined indicator strategies I've tried in 5 years. It doesn't change my life yet, but at least I don't frustrate every time the RSI crosses pointless.

Thank you for responding so honestly. It motivated me to see that you do not sell smoke or promise to double accounts in two days. That already distinguishes you from half the trash content out there. I will follow this diary carefully.