The Keltner Channel - Williams StrategyThe Keltner Channel/Williams strategy is a very easy method to implement. I came across this method a little while ago while playing around to find a simple and reliable strategy to compliment the 5min timeframe. After a lot of testing and back testing I found out that this is system could pull some good profits out of the market. Regardless of how good a strategy is, remember rule no.1: Protect your money by applying your money management rules. Let’s not keep you waiting and get down to business. Step 1 - Open a 5 min chart of the EUR/USD That’s how your graph should look like:
Step 2 Buy signals – For a buy signals to be valid, price needs to touch or pierce lower band Sell Signals - For a sell signal to be valid, price needs to touch or pierce upper band To make it easier for you to understand, let's have a look at a trade set-up:
As you can see form chart above, buy signal was triggered as soon as blue line on Williams broke (-20) level from the upside. This system is very simple, but requires smart money management. This method will give you some false signals like any other system, hence the reason for proper money management. I personally take half my position out as soon as I hit 8 pips profit and bring my stop loss to half the initial stop (fairly aggressive). I let the other half of my position run. As soon as I am up an extra 5 pips, I bring my stop loss to break even and from then on each 4 pips increase I reduce my stop by 2 pips. Another rather conservative approach is to take half of your position out as soon as price touches middle white line and bring your stop to break even, while letting the rest of your profit run. Money management is key to this system. However, you may come up with another indicator or style that could compliment this system. I like this strategy due to its simplicity and effectiveness. Happy trading. Top of: Keltner Channel and Williams Strategy Page Back to: Forex Trading Strategy Page Back to: Forex Trading Domain Homepage
|
