Channel and Average

• Pair: EUR/USD
• МетаТрейдер (recommended)
• Chart: candlesticks
• Timeframe: 30 minutes
• Indicators: N/A
• Lot size: Any
• Maximum trades per day:
Channel trading – 3
Trading on the Average – any

Algorithm

21:00 (GMT)

1. Preparation of the Chart
Drawing the 3 horizontal lines. One line is High of the current day, an other line is Low of the current day and the next one is Average between High and Low (High+Low)/2.

2. Chart Analysis.
Looking on the Open and Close price of the day during the period of the time concerning the rectangles. There are 5 possible locations of rectangles:

2.1) LowLow (LL).
Open and Close are located below Average line.
* OpenOn the D1 timeframe – inverted umbrella Doji.

2.2) HighHigh (HH).
Open and Close are located above Average line.
* Open>Average and Close>Average
On the D1 timeframe candle: – Doji dragonfly (umbrella).

2.3) HighLow (HL).
Open is located above Average line and we have not less than 10 p between Open and Average. Close is below Average line and interval between Close and Average is not less than 10 p.
* Open>Average and Close10 and Open-Average>10
On the D1 timeframe candle: – Marubosu black.

2.4) LowHigh (LH).
Open is located below Average line and interval between Open and Average is not less than 10 p. Close is above Average and the interval between Close and Average is not less than 10 p.
* OpenAverage and Close-Average>10 and Average-Open>10
On the D1 timeframe candle: – Marubosu white.

2.5) Average = Close (AR).
The rules are the same with items 2.3 and 2.4, only the difference is Open or Close is located not less than 10p from Average.
* abs(Average-Close)<10, abs(Average-Open)<10.
On the D1 timeframe candle: – Doji, Kharami Cross.