Fractal Channel - VertexFX Indicator

FractalChannel is a simple yet powerful VertexFx client-side indicator script that can be used to trade breakout strategy or as a reversal strategy.
The FractalChannel is created by connecting the upper fractals together, and the lower fractals together. An upper fractal is a High surrounded by two lower Highs on both sides. Similarly, a lower fractal is a Low surrounded by two higher Lows on both sides.
A Fractal High is a decisive level at which the market failed to go higher and has exhibited reversal. Similarly, a Fractal Low is a decisive level at which the market failed to go lower and has exhibited reversal. Based on the market circumstances (trending or consolidating), it can form strong support and resistance levels. These levels can be reversal levels in consolidation mode, or breakout levels in trending mode.
The Fractal Channel indicator requires atleast 5 candles, and a valid Fractal Channel - which is the existence of the red and blue lines.

Beakout trading method:

Buy: Place buy trade when candle has closed above the upper channel (red) line at close of candle. Do not open buy trade if candle has a gap-up opening. Place stop-loss below the lower channel (red) line.

Sell: Place sell trade when candle has closed below the lower channel (blue) line at close of candle. Do not open sell trade if candle has a gap-down opening. Place stop-loss above the upper channel (blue) line.

Reversal trading methodology:
Buy: Place buy trade when candle has closed below the lower channel (blue) line at close of candle. Do not open buy trade if candle has a gap-down opening. Place stop-loss below the nearest Swing Low. Place profit-target above the upper channel (red) line.

Sell: Place sell trade when candle has closed above the upper channel (red) line at close of candle. Do not open sell trade if candle has a gap-up opening. Place stop-loss above the nearest Swing High. Place profit-target below the lower channel (red) line.

Attachment 12909

http://realtimedata.in/2016/11/29/fr...xfx-indicator/

This is a good indicator, and I think a good MM would also make it survive some sub-optimal market conditions.




Neteller here: www.ituglobalfx.com.ng