The Turtle Trading Channel Indicator For MT4
Table Of Contents:
- The Turtle Trading Channel Indicator For MT4
- Trading ideas with the The Turtle Trading Channel Indicator For MT4
- The Turtle Trading Channel Indicator For MT4 - Buy Entries
- The Turtle Trading Channel Indicator For MT4 - Sell Entries
- The Turtle Trading Channel Indicator For MT4 - Conclusion
The The Turtle Trading Channel Indicator For MT4 is a very simple indicator that allows the traders to trade based on 10 and 20 days MA breakout. To set the stop loss and take profit while using the 10-day breakout method, use the 5 day low or high. For the 20 day breakout, you need to use the 10 days low and high.
The The Turtle Trading Channel Indicator For MT4 is a powerful trend determiner. It was developed by Bill Eckhart and Dennis Gartman. They devised the core algorithm based on the N-day breakout formula. The indicator uses the highs and lows of the market and finds out the potential breakout zone in the chart.
To the novice traders, the core function of this tool might seem out of the track as the tool draws support and resistance in the form of colored segments. This means you should see blue lines below the candles when the price is rallying higher and the red lines above the candles when the price is in a strong downtrend. There will be a safe threshold level identifier adjacent to the colored line segments.
Consider the grey dashed lines as the safe zone to take the trades. Though the use of the grey line in the Turtle Trading Channel indicator varies depending on the trader’s skill. People who have strong skills can set the pending orders at the grey line when the pullback probability is low. Pull back in the price is nothing but the retracement after an extended rally in favor of the trend. Before we move to the function of this indicator, let’s give you some time to select the right trading method for this indicator.
Trading ideas with the The Turtle Trading Channel Indicator For MT4
Using a random trading method with a high success rate is not going to work. Since the indicator focus on the highs and lows and historic price movement, it is important to trade with a higher time frame trading method. Choosing a lower time frame trading method can increase the risk factors significantly and impose a great threat to your career.
Unless you do the things in the right order, it will be a tough call to take the reading from this indicator as a filter tool. The strategy which you will be using must have the ability to find the major support and resistance. People who use a system-oriented with minor support and resistance might not get their desired result.
However, strong knowledge about price action trading methods can help you to trade in a lower time frame. Remember the fact, the Turtle Trading Channel Indicator initially works 20-day highs and lows. So, try to stick to the hourly and above time frame so that you get the best results. In case you intend to trade in a lower time frame with the Turtle Trading Channel Indicator, be sure you are not trading during the key news.
The Turtle Trading Channel Indicator For MT4 - Buy Entries
The professional traders know the exact way to take their long trades. They never break the rules and they always intend to make a profit by using a strategic method. Instead of trading the market with aggression, they follow a systematic path. Their system draws the key trading zones in the chart.
Since the long trades are executed at the support, you should be looking for the bullish price action signal at the demand zone. Once the bullish price action trade setup is formed, look at the dynamic line segments created by the Turtle Trading Channel Indicator. In the best scenario, you should see the long trade setups when the distance between the blue and grey dashed line segment is minimum.
So, carefully evaluate the distance of these two colored lines as it directly reflects the quality of the signals. Regarding the potential risk factor, it should not exceed 2% of your capital. Once you feel comfortable with this method, you can also trail the stops and ride the trend as long as the line segment color is blue.
The Turtle Trading Channel Indicator For MT4 - Sell Entries
During the short trade setup, the line segment of the Turtle Trading Channel Indicator should be red. The red color line segment suggests us the price is trending down and it is ready to create a new low. Your trading system should give you an alert about the potential sell signal.
When you locate the sell signal in the chart with the help of your existing trading method, you can move to the trade filtering process. The signal should be created right at the red line segment or at the grey line of the Turtle Trading Channel Indicator. Unless the trade signal is created at the dynamic resistance zone, you don’t have a strong sell signal.
Evaluate your take profit and stop loss level so that you can make the right decision without having much trouble. If the RR ratio is less than 1:2, you should give a second thought about the trade. No trading method is perfect and you need to accept the losing orders. But using a proper risk to reward ratio can improve your performance and quality of the trades tremendously.
The Turtle Trading Channel Indicator For MT4 - Conclusion
The professional traders don’t want to take any trade without doing the core market analysis. They rely on long term goals and take their trades by assessing the core factors. Since the Turtle Trading Channel Indicator depends performs well in the higher time frame, you should learn its use in a higher time frame.
As you get comfortable by using the line segments, you can slowly move to the lower time frame based trading system. But lower time frame trading requires precise trade timing. For that, you have to know the impact of the major news. However, you can avoid learning about the details of fundamental analysis but in that case, you need to look for the trade setups during the stable state of the market. Never get confused when you use this indicator for the first time.
This tool is nothing but a helping tool that can improve your execution and allow you to take the right decision within a short time. Unless you master its use properly, stick to the practice trading account. And make sure you do follow the regular investment rules while managing the risk profile in each trade. Never get carried away by seeing the high success rate of the Turtle Trading Channel Indicator. Every indicator has some flaws and you need to minimize its impact by using a money management policy.