Sicuro Channel is a channeled instrument of tehanalysis
Indicator Sicuro Channel is designed to search for entry points during the flute period. The algorithm of its work is based on mathematical calculations, which are used to determine the upper and lower levels of the channel, as well as its width. This indicator has two important advantages. First, it forms a leading signal about the beginning and end of the flute. And secondly, if the channel was broken through by the price, but the breakthrough was false, the indicator will not change the boundaries of the previously built channel.
Sicuro Channel parameters
Other the correctness of the indicator’s work will depend on how correctly it was specified in the settings of the parameters’ value.
The number of candlesticks that the indicator will use in its calculations determines the parameter “period”.
The ATR indicator is used as a signal filter. In the settings you should specify its period – “ATRperiod”.
The degree of filtering of signals by the ATR indicator is set using the parameter “ATRfilter”.
Channel width is defined by “Deviation”.
On the chart of a trading instrument price Sicuro Channel looks like a channel, the boundaries of which are broken lines:
The signal to open a trading position is a narrowing or expanding of the channel. In my example, the red arrow indicates a narrowing of the channel. This means that in the near future there will probably be a flute in the market. Transactions should be opened from the borders inside the channel with profit taking at the opposite border. This can be done until the expansion signal (blue arrow) appears. This will mean that the probability of completing the flute is high. However, when using such signals, there is one important condition. When changing one of the channel boundaries (narrowing/expanding), the second line should remain unchanged (white arrows indicate it). If both upper and lower limits of the channel change, this situation cannot be considered as a signal.
To simplify trading, you can set a modification of this indicator. It does not draw a channel on the chart, but looks like a colorful histogram under the chart. If its prevailing color is green, it means that you can consider buying, red – sales. And if the color is blue, you can rest, because it indicates a lack of certainty in the market.
In conclusion, Sicuro Channel is the most efficient at EUR/USD pair.
Before applying the indicator to a real account, its work should be tested in demo trading.
Download technical analysis tool Sicuro Channel: