High accuracy “Support and Resistance Standard Deviation Channel Trading System“.
What I like about standard deviation is that it allows to easily determine a trend, you just need to draw channel over the selected period of time and that’s it, you have detected a trend.
However, to use this “Standard Deviation Channel” indicator efficiently you need some experience.
- Time Frame: H1 or higher
- Currency Pairs: GBPUSD, EURUSD, USDJPY, AUDUSD, and USDCAD
- Standard Deviation Channel
- FS 30-4
- FS 30-5
- Commodity Channel Index
- Download “TraderVersity.Com-StrandardDeviationChannelSystem” (Zip/RAR File).
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
- Copy the “TraderVersity.Com-StrandardDeviationChannelSystem.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Meta Trader Client.
- Select Chart and Time frame where you want to test your Forex system.
- Right-click on your trading chart and hover on “Template”.
- Move right to select “TraderVersity.Com-StrandardDeviationChannelSystem” trading system and strategy
- You will see “SR-Standard Deviation Channel System” is available on your Chart
- Standard Deviation Channel is in an UPTREND
- FS 30-4 and FS 30-5 lime color
- Commodity Channel Index line above 50 level
- Standard Deviation Channel is in a DOWNTREND
- FS 30-4 and FS 30-5 red color
- Commodity Channel Index line below -50 level
- Initial Stop loss above the previous swing high or below the previous swing low
- How to use correctly Standard Deviation Channel
- If the market is in an uptrend, you should take ONLY long positions, when the price will reach the lower line. Never take a SHORT position in an uptrend when the price will reach the upper line, that does NOT mean that market is overbought, in uptrend price can easily go over the upper line and hit STOP LOSS, of a trader who was stupid enough to take a SHORT position in the bull market.
- Obviously, the opposite goes for market in downtrend, do not take long positions on lower line, NEVER.
Most importantly, use a demo account or a small live account first to practice this trading system.