Examples of Forex Channel trades from an Expert4x client

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Below are some Forex Channel trades submitted by a mentorship client recently. Hopefully this will provide an educational perspective and opportunity for discussion for all clients. For more information on our free Forex Channel trading course and discussions please use these links on our website
TRADES PLUS CLIENT COMMENTS

USDCHF

Sell usdchf 0.5 lots.  Entry = .90477 TP = 0.89888 SL = (0.00589 *2 = 0.01178) + 0.90477 = 0.91655 Entered early as 15M MA had just broken down from a knot with 30M and 1hr MAs also moving downward.

Moved TP to negative side of entry as new channel has formed.

Moved TP to negative side of entry as new channel has formed.
Moved TP again to profit side of breakeven, near 5.  Candles have formed a double top on horizontal resistance.  Possible breakout to downside of channel.      Going against my reasoning is the RSI.  RSI has formed 2nd wave and may breakout to the upside.  Also the last candle is sitting on both horizontal and non-horizontal support.  If the market breaks this level to the downside there may be a long candle.

SL hit.  Previous TP would have closed the trade if not moved back to positive side of breakeven.

SOME FEEDBACK USDCHF:

Good process. Not sure why you did not trade the 5 bounce on the USDCHF. If you redrew your channel lines you would see that it was a normal 5 bounce – not a failed swing. There was also a 6 bounce opportunity.

EURAUD Trade

EURAUD sell 0.05 lots         entry = 1.44511 TP = 1.43647 Distance.  1.44511 – 1.43647 = 0.00863 SL = (0.00863 * 2 = 0.01726 ) +1.44511 = 1.46237 Notes.  Bars crossed MA well into the channel.  Entry is a bit late.  Combined with entry being on a support line = not a good trade to have entered into.

Moved 50% to TP so moved SL to Breakeven with a 49 pip trailing stop. PT reached

COMMENT

Upon reaching point 4 when channel trading you should enter then next trade (a buy form point 4) immediately – that is the process. Although this did not work you still would have come out at breakeven with a following stop. The only time not to enter at point 4 is if it is severely against the trend – see next trade.

Next trade – EURAUD

Sell euraus 0.5 lots Entry =1.42543 TP= 1.41366 Dist = 0.01177 (* 2 = 0.02354) SL =1.44897   Moved SL to positive side of Breakeven.  Could take profits now as it appears the trend may have turned upward, however candles haven’t crossed the moving average yet.   Trade closed with SL.

COMMENT

You would have done better if you stuck to the Forex channel trading rules and closed the deal when point 4 (not numbered) was reached. The crossing over the MA is not a channel trading rule for point 4 – only for point 3 This would have avoided the stop out. Also do not enter a buy at point 4 as the sell trend is too strong.