Hi to all, and thanks for your contribution.
I'm very enthusiastic about this strategy and started demoing this week.
Yesterday I was setting up my platform (MT4), in order to check and choose pairs to trade.
Well, at first I was using another charting software (daily only) which automatically draws S/R lines and TLs. It also draws channels.
Maybe unconsciusly, I also set up my 4H charts in MT4 using channels.
The result? Well, see attached pictures.
Pros: the entry signal is much stronger. A higher positive filtering. E.g.: the AUDCAD current situation (as posted above), is ending up towards the top of the channel. Thus, even though there's still 'room' for a bull phase, the trade's life will be shorter.
Cons: less entry signals ('cause we must wait price bounce back from the channel's extremes).
What do you all think about?
Giacomo
P.S.: MACD is simply added to detect divergences. The purple line is a 200 SMA