Trendsignal with asymetric channelis a trend following forex strategy based on the indicator trend signal v.2 programmer by Pankaj Bhaban pubblied on www.MQL5.com.
This is an arrow indicatro that “It calculates number of bars on charts and then based on histogram it draws a arrow which is again confirmed when next opening bar price its high in case of buy arrow or low in case of sell signal, when both these conditions are satisfied it draws an arrow. It is price behavior change It means if arrow has appeared price will change it direction a five bars sequence, where the central bar has higher maximum or lower minimum arrow shows central bar position.”
Time Frame H1 and H4
Currency pairs: majors.
Trendsignal risk 3
Vortex Indicator 21 periods (with level 1.05);
Asymetric Channel high/low formed by two simple moving averages:
Simple moving average 50 periods (close High);
Simple moving average 12 periods (close, Low);
Trend line tool.
This channel is asymetric because do not is (50-50 or 12-12 periods).
Forex Strategies Resources argues that the time-series describing the financial markets are asymmetric, then apply symmetrical ideal models for phenomena that are not symmetrical can lead to frequent misinterpretation.
The main financial symmetrical patterns of technical analysis are:
Oscillators, Bands, oscillators created on the transformed Fisher, Furier and Gauss.
Rules Trendsignal with asymetric channel
Apply this template a the currency pairs in trend.
Find the currency in trend with trend line tool is one the best method.
When the price is into the channel do not trade.
Trendsignal buy arrow confirmed by:
12 EMA > 50 EMA;
Vortex indicator green line > level 1.05.
Trendsignal sell arrow confirmed by:
12 EMA < 50 EMA; Vortex indicator, red line > level 1.05.
Exit position with fast profit or ratio stop loss 1:1.
Examples EUR/USD 4H time frame 30 pips, GBP/USD 40 pips, AUD/USD 30 pips, USD/CHF 30 pips.
Initial stop loss on the previous high/low swing.
In the pictures Trendsignal with asymetric channel.