Parallel Channels Binary System For MT4
The Parallel Channels Binary System For MT4 is a way more advanced trading method you can ever imagine. Just by having the template is not enough. You must have a fair knowledge about the basic price action pattern.
But there is nothing to worry about as we will tell you the key pattern that is frequently formed at the support or the resistance level. After installing the chart, you will notice something is different than the traditional template or trading strategy. This appearance of this trading template will be much more professional and the traders will be taking the trades with the combination or trend line, support, resistance, channel, and price action signal. Normally, the novice traders will think that they won’t be able to use the trading method.
But we will break down the trading steps in a very precise way so that the traders can take a trade without having any major issues. Before we get into the key steps, remember, we will be taking the trades at the trend line and the channel line. Though this template will be able to determine the chart pattern for the professional traders this segment will be discussed in the last part of this article.
For the ease of use, we will be focusing on the simple approach so that the new traders can make money like the professionals without going through an intense study period. Let’s explore the methods to take the call and put option trade with the parallel channel trading method.
Call option setup
The obvious trend of the market must be bullish for the call option setup. You don’t have to depend on the higher chart to find the trend. The chart in which the analysis will be done will require visual examination. Just having a glimpse at the chart, we should say the market is going up. After that, it’s time to find the trend line and the support line.
Usually, the support and the trend line make an advanced pattern for the retail traders but won’t be using the pattern as a new trader. Wait for the last segment of this article as we will discuss how to take advantage of such a major pattern. In a valid up trend line, you will notice a small red arrow forming pointing to the north.
The first two arrows confirm that the price is ready to go higher. In the third arrow, we will be looking for a price action signal. In general, advanced traders use different kinds of candlestick patterns to take the trade. But the novice traders can rely on the pin bar and the engulfing pattern.
And if the pattern is valid, a third red color arrow will be created in the chart pointing to the north. Execute the call trade and the nearest resistance level should be your take profit. For the option trader, they should be using 8-10 candles for the expiry of the trade. Note that this system won't work properly if you deploy the template in the 1-minute chart.
Put option setup
For the put option, we need a similar pattern like the long trade setup. Find the potential bearish trend line or the horizontal resistance line that will allow us to take the short trade. The first downward arrow confirms the price is going to move down. But we need the second arrow to find our third point.
The ex4 files automatically connect the two important points and let you know where the third point is. When the price hit the third level or the major resistance zone, you can short the asset. But you will notice that these are not like our regular trend line. The complex calculation is used so that we can find the resistance level with the reactive price movement.
This means you won’t get a single trend line all the time. From each point, you might get one trend line and the trend line that will be drawn from the last line has the most significant weight. When you use this method, it is better to look for the price action signal. Just with the basic knowledge of the price action signal, you can significantly improve your trade execution process. When you take the put option be confident with your approach. It’s not like you have to use this trading method to trade the options market only.
You can trade Forex, stocks without any expiry period. But in that case, you have carefully assessed the SL level by using the candlestick pattern and the SR points.
Though it’s a big complex for the new traders but to pursue your career in the trading industry, you must learn this technique by heart. Spend a few weeks in the demo account in testing this trading method and you feel comfortable with the Parallel Channels Binary System For MT4.
Potential chart pattern formation
We have said that we will discuss how to trade the potential chart pattern formation with this trading model. You don’t have to depend on the complicated price action trading method to trade the chart pattern. The most popular form of chart pattern that you find in this system in the rectangular chart pattern and the triangle chart pattern.
After the pattern is formed in the chart, wait for the price to break about the critical support the resistance level. After the clear break of these patterns, you can take a long or short trade. If the breakout takes place with a massive candle, you should wait for the price to retrace back. Let’s say, you have a bullish breakout in the triangle pattern.
The resistance will turn into strong support and the price might fall back to the broken resistance line providing a second chance to execute the long. By using this conservative technique, you can significantly tighten the stops. In case you are using the options trading method, you can deal with a tight expiry period that will give higher rewards.
But to trade such a major chart pattern, you must have a strong practice and the mental strength to deal with such intense breakout. Before you try to use the patterns in this system, spend a few months testing the regular trading method.
Download the complete system description and the files here: