Channel Forex Trading System

Channel is one of the most traded Forex chart pattern in Foreing exchange trading. Channel trading gives good chance for beginner or expert traders to get big money. Channel chart pattern determine trending or side ways market price in Forex market in all time frame trading.

If there is no trend in Forex market (sideways), we still can make channel horizontal chart pattern. And if we have sloping channel chart pattern, we can consider it as trending market. So, the point is we can still spot trading entry and exit using channel trading chart pattern.

As you can see in the picture below, channel trading chart pattern can determine the bullish trend on the trading chart.

Channel trading chart pattern can be identified just after we decide 2 lows and 2 highs. After we drew a trading channel, we can follow this trading system:

In this situation we have two chances :
1. Market price trades in the channel range, it moves up and down like a ball.
2. Breakout chance. We can take opportunity to open a trading position in the direction of the breakout.
In the picture below the market price bounces inside the channel trading chart pattern.


But the bullish trend was not powerful enough and bullish trend movement did not survive. The market price corrected below 50% of fibonacci level and then price reversed again to the lower channel and tried to test the line or support level. Once the market price broke the support line, then we considered it as sell trading signal. And the support line change into resistance line.


We can plot our stop loss above the resistance level line, and we can set profit target based on risk and reward ratio. This is our trading money management.

YOu can use your experience trading skill in this trading system to set your profit target and stop loss order. For example we can consider again if the market price breaks support or resistance level.

In the trading example above the market price trend moved bearish, and our trade is reached the second profit target. This trading system can gives an good profits. And also this trading system is quite easy and very simple Forex trading system. The basic of this trading system are to reduce trading risk and to improve the trading profitability.

There are a lot of Forex trading system like ADX Trading strategy, Divergence Trading Strategy, Heiken ashi technique, Triple Moving Average Crossover trading, Fibocalc v31 system, Alternative Ichimoku, Fx5 divergence V3, Kuskus Starlight trading, Trend alexcud trend trading, Two bar reversal trading, Donchian breakout system, Bollinger breakout system, CCI strategie and etc.

Also, if you are interested in trading in the parallel channels, recommend to pay attention also to the strategy of sliding price channels Victor Barishpolts where you will learn how to automate trading strategy B. Barischpoltsa with a profitable forex advisor.