I like to add new tools and strategies to our base systems as time goes on so as not to overwhelm new traders. In this chart I've added our Trend Channel, a fantastic tool we were taught by one of our traders who has 24 years experience trading foreign currencies.

It shows the slope of the trend and is the white lines sloping up to the right. You can usually safely short the upper quartile and buy the lower quartile and this tool SHOWS LONGER TERM TREND. Because it is sloping UP and not down, you are safer looking for BUY signals vs selling, but keep in mind this is the fourth day of the uptrend so sell signals also worked great today.

The first trade you sell at the 4 hour statistical high, its safer a few minutes later as the FX Multimap loses strength at the double top. The market then falls 20 pips and finds support at the previous days high. The second sell signal is near the top of our trend channel (this is not a 4 hour stat trade) but we have a trend reversal sell signal so we get short and the market falls 50+ pips!

Where does the market stall at? Right at our 4 hour stat low! You buy here knowing the longer term trend is up. It gives you 3 signals and 3 chances to catch 10 to 20 pips each!

The last buy signal is also at the 4 hour stat low and the FX Multimap is less weak than before but since the market has fallen OUT of the trend channel we suggest taking a small profit as the market may reverse soon.



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