The Turtle Channel Trading with Stochastic and RSI

The Turtle Channel Strategy – Richard Dennis is a trader from Chicago, Illinois. He has a master’s degree from Tulane University and used to be a member of the Chicago Board of Trade.

He gained fame in the trading world by creating the Turtle Trading System. Dennis was inspired by his observation of turtle farming and then ran the “Turtle” experiment.

Through this experiment, Dennis introduced Turtle Trading. He’s also well-known for turning an initial investment of $400 into over $100 million.

The Turtle Channel Indicator is a great tool for spotting trends. Traders who follow price action look for trends by noting swing highs and lows that keep making higher highs or lower lows. They also use these swing points to find support and resistance levels.

The Turtle Channel Indicator is a trading tool that helps you find the best times to enter the market. It does this by spotting price breakouts and bounces off support or resistance levels, all based on its own special formula.

The Turtle Channel Indicator has a few settings you can adjust:

• Trade Period: This sets the number of periods for the solid line.
• Stop Period: This sets the number of periods for the dotted line.
• Strict: This option makes the indicator look for trend reversals based on candle highs and lows crossing the lines, rather than the candle’s closing price.
• Display Alerts: This turns trade signal alerts on or off.

Buy Trade Setup

• When to Enter: Open a buy order when the lines shift below the price and the solid line turns blue.
• When to Exit: Move your stop loss below the lines and stay in the trade until you’re stopped out with a profit.

Sell Trade Setup

• When to Enter: Open a sell order when the lines shift above the price and the solid line turns red.
• When to Exit: Move your stop loss above the lines and stay in the trade until you’re stopped out with a profit.

The stochastic oscillator helps identify overbought and oversold levels, similar to the MACD. It has a fast-moving and a slow-moving metric. The idea is that in an uptrend, prices close near their highs, and in a downtrend, they close near their lows. On a scale from 0 to 100, a reading of 80 or higher suggests the market is overbought, indicating a potential drop, while 20 or lower suggests it’s oversold, indicating a possible rise.

When using the stochastic oscillator, watch for divergences. This happens when the indicator and price move in different directions. For example, if the price reaches a new high but the stochastic doesn’t, it’s bearish divergence, signaling potential weakness. Conversely, if the price hits a new low but the stochastic doesn’t, it’s bullish divergence, signaling potential strength.

Divergence indicates a possible change in price direction but isn’t a timing tool. It might take a while for a reversal to happen. So, don’t trade based solely on divergence. For bearish divergence, wait for the price to break lower before shorting. For bullish divergence, wait for the price to break higher before going long.

Next, I’ll show you the Turtle Channel trading strategy, which is known for being highly effective in both forex and stock markets. This strategy is easy to learn and reliable for both scalping and swing trading. Let’s dive in!

• Download “TraderVersity-MACD(stochastic)RSI” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “TraderVersity-TurtleTrendReversal.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “TraderVersity-TurtleTrendReversal” trading system and strategy.
• You will see the “TraderVersity-TurtleTrendReversal” is available on your Chart.

Let’s start by finding a BUY signal with the ‘Triple Threat Trading Strategy’.

Here are the rules for entering a BUY trade.

• Ensure the Turtle Channel lines are below the price action, indicating a bullish trend.
• Check the Stochastic Oscillator to make sure both K and D lines are in the oversold region or showing bullish divergence.
• Buy when the Stochastic lines cross above the oversold area.
• Confirm that the Stochastic lines haven’t hit overbought levels yet.

Stop Loss
Set your stop loss just below the nearest swing low.

Profit Target
Move your stop loss below the dotted lines as the trade progresses, or aim for a 1 to 3 risk-reward ratio.

Here are the rules for entering a SELL trade.

• Check if the Turtle Channel lines are above the price action, indicating a bearish trend.
• Look at the Stochastic Oscillator to make sure both K and D lines are in the overbought region or showing bearish divergence.
• Sell or go short when the Stochastic lines cross below the overbought area.
• Confirm that the Stochastic lines haven’t hit oversold levels yet.

Stop Loss
Set your stop loss just above the nearest swing high.

Profit Target
Adjust your stop loss above the dotted lines as the trade moves, or use a 1 to 3 risk-reward ratio.

The main reason I like the Turtle Channel “Trend Reversal” Trading Strategy is that it lets us enter trades right near support or resistance zones.

DOWNLOAD TRADING SYSTEM

---

The BEST “MACD, Stochastic and RSI” Trading Strategy Nobody Told You About. In this tutorial will teach you a clear and precise step by step on, “How to trade successfully in Forex, Stocks and Commodities or any financial market and make consistent profits with absolutely minimal risk of stop losses”.

DOWNLOAD TRADING SYSTEM

---

The Best Way to Combine EMA and Trendline for Scalping and Swing Trading.

This strategy is straightforward yet remarkably accurate. Our focus today is on the 50-period EMA trading strategy, which combines the Exponential Moving Average indicator with trend lines to enhance its reliability.

DOWNLOAD TRADING SYSTEM

---

By combining these customized settings for the RSI and CCI, traders can gain a better understanding of market conditions and make more informed trading decisions.

DOWNLOAD TRADING SYSTEM

---

Simple and high accuracy “Forex Cynthia Signal Trading System” – Of course, not every trade will be profitable, there is no holy grail in Forex.

• Cynthia’s Signal Entry Stop: Magenta color
• Cynthia’s Signal Hot Dots: Red color
• Cynthia’s Trend Bars: Magenta color
• Trend Slope: Magenta color
• BBand Stop: Magenta color
• Cynthia’s  i Trend: Green line < Purple line
• RSI: Below the level 45 line

DOWNLOAD TRADING SYSTEM