Double Channel Entry Strategy

Posted August 4th, 2010 by Rapid Forex 9 Comments »

During the LIVE forex trading bootcamp new strategies are discussed that haven’t been fully explained on the rapid forex blog yet. Each new strategy makes it’s way to the blog.

This post shows you two ways to trade a channel with examples from the USD/JPY & AUD/USD. A trade wasn’t entered that day, but it still shows you the criteria for dealing with a fibonacci channel trade.

90 Day Forex Trading Bootcamp Watchlist Archive

It’s going to be another great week of trading. Today I’m watching the USD/JPY. The AUD/USD has a mixed signal with a possible downtrend emerging, but the daily trend is still up, so I don’t want to go against it.

USD/JPY

It started with looking at the snapshot. Although the USD/JPY doesn’t have all the regions shaded, the charts show a more promising opportunity. The snapshot is merely a tool to track what’s happening with various timeframes and have a place to look for opportunities. Here’s the snapshot for today with the USD/JPY circled in red: Then we start looking at the charts. First, the 1hr chart has a nice downward slope. Near the bottom, you’ll see that prices have flattened out into a small (but short lasting) consolidation: If we zoom into the 15-min charts we’ll see this consolidation in more detail:

What to look for?

There’s two ways to enter this trade. We’re looking for short opportunities. You’ll also notice in the image above that there’s a tighter channel (thin blue lines) within the larger channel (thick red lines). To go short we’ll look at the 5-min trend. We’re looking for possible entries:

  1. Prices move to top of channel, then bounce down. Ride the trade to the bottom of the channel going short.
  2. Prices move down and break the lower channel. When prices retrace back up to form an umbrella handle below the channel, get in and ride a fibonacci wave.

I’ve illustrated these scenarios in the image below: Sooner or later, prices will have to leave this channel. Since it’s an 80 pip channel, this could easily happen in a few hours once Tokyo opens at 11 pm GMT. I’ll be watching this casually all day…

  • Share/Bookmark

Related posts:

  1. Forex Trading Opportunities in ALL timeframes
  2. Forex Market Snapshot Video Tutorials
  3. Forex Trading Market Snapshot
  4. Forex Trading for Your Schedule
  5. Forex Bootcamp Update

Tags: , ,   Posted in 90 Day Forex Trading Bootcamp

9 Responses to “Double Channel Entry Strategy”

  1. juddNo Gravatar Says:
    August 4th, 2010 at 10:35 pm

    thks brian keep up the good work

    [Reply]

  2. Badmus AdeyemiNo Gravatar Says:
    August 11th, 2010 at 6:55 am

    nice one there brian,pls correct me if i am wrong,we decided not to take cable because there is news on it.happy anniversary

    [Reply]

  3. Mark PappasNo Gravatar Says:
    August 14th, 2010 at 1:43 am

    I just came across your website and enrolled in your e-course. I’m thoroughly impressed thus far. Pretty excited as well. Cannot wait for your Forex Bootcamp. I’ll be there, thanks.

    [Reply]

  4. Norbert ParchmanNo Gravatar Says:
    August 21st, 2010 at 5:50 pm

    Hello, I was just browsing the internet seeking some details and came across your web site. I really like the data that you simply have on this blog. Saved this site.

    [Reply]

  5. cathyNo Gravatar Says:
    September 1st, 2010 at 3:09 pm

    What about the GBPUSD??? It’s positive all the way across.

    [Reply]

    Rapid ForexNo Gravatar Reply:
    September 2nd, 2010 at 2:13 am

    @Kathy – I can’t go back & look. There must have been something about the charts that didn’t sit right with me. Perhaps they were all pointing up, but too steep. The snapshot is simply a guide, you still need to look at the charts themselves, but it helps you track which direction pairs are moving in in various timeframes & is a good place to know where to look for opportunities.

    [Reply]

  6. John GNo Gravatar Says:
    September 7th, 2010 at 8:59 am

    I can’t figuire out the small channel (in blue dashed line) means

    [Reply]

    Rapid ForexNo Gravatar Reply:
    September 7th, 2010 at 10:08 am

    @John – the blue dashed line is the current price when the chart was taken. Ignore it. The channel are the two solid blue lines ;)

    [Reply]

  7. graphic design careersNo Gravatar Says:
    February 17th, 2011 at 6:28 am

    You have wrote about quite a few engaging points in this posting. I came across this by using Yahoo and I have to confess that I am now subscribed to the site, it is quite decent ;)

    [Reply]

Leave a Reply