The Best Way to Trade Forex Fractal Channel MT4 Indicator
The Fractal Channel MT4 Indicator will help you boost your profits with real-time support and resistance levels. The most important items in trading are price action followed by volume, which creates support and resistance on the chart. Traders know that support and resistance is extremely important and yet most traders see it in hindsight. Unless you can figure out a way to use hindsight to make money, which is impossible because the only thing that counts in trading is real time the Fractal Channel MT4 indicator is a special indicator that gives you real-time support and resistance.
The second thing that the Fractal Channel MT4 indicator is useful for is for stop loss and trailing your SL as well. Whether you’re doing automated trading to manage the exits of your trades or whether you’re doing discretionary trading to manage your exits to know where your stop loss should be, the ideal placement is based on support and resistance instead of some arbitrary levels that means absolutely nothing to a technical chart.
The third thing the Fractal Channel MT4 indicator is good for determining the risk from the entry point to the stop loss tells you how much are you going to loss of you’re wrong, and you can use that value to calculate the correct position sizing so that you have a standard risk.
Fractal Channel MT4 Indicator Settings
The Fractal Channel MT4 indicator doesn’t have any variable as it determines the real-time support and resistance level through its own proprietary algorithm. The only customize variables are the support and resistance colors and the preferred inputs are red for support or the lower channel border and blue for resistance or the upper channel border.
Fractal Channel MT4 Indicator Strategy and Trading Rules
The Fractal Channel MT4 indicator can be an additional tool to your existing strategy as it will help you fine tune the current support and resistance levels. The Fractal Channel MT4 indicator is a universal indicator that can be used on any time frame and on any currency pair. The preferred time frame to implement this strategy is the 15-minute chart.
We only want to enter the market at extreme levels because that’s when the odds of winning are greater and in this regard, we’re going to enter only when we see a breakout above/below the Fractal Channel. The premise behind this strategy is that eventually the market is going to revert to the mean. Without further ado, these are the buy/sell entry rules:
- Buy Signal: Entry long at the first 15-minute candle that breaks and closes below the red line using a static stop loss level of only 20 pips and take profit at the blue line resistance level;
- Sell Signal: Entry short at the first 15-minute candle that breaks and closes above the red line using a static stop loss level of only 20 pips and take profit at the red line support level;
In the above chart, we have the EUR/USD 15-minute chart and some long/short trading opportunities are highlighted. As it can be seen the Fractal Channel MT4 strategy is a counter trend strategy that can generate enough daytrading signals to make you a handsome profit. Due to the Fractal Channel accuracy to predict real-time support and resistance level you’ll experience losing trades sporadically.
Recommended Time Frames for the Fractal Channel MT4 Indicator
Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
Fractal Channel MT4 Indicator Download
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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.
And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full autopilot. We highly recommend this powerful MT4 Expert Advisor.
Visit our Free MT4 Indicator Download page. We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.
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