SHI Channel true Indicator

SHI Channel true Indicator

The SHI Channel true Indicator for MT4 uses the fractal strategy to find support and resistance levels.

The SHI Channel true Indicator employs a Fractal strategy to create a channel consisting of three lines: an upper line, a lower line, and a dotted middle line.

The upper and lower lines of the channel are determined by identifying significant peaks and valleys in the price data.

These points are known as fractals, local extremes where the price makes a high or low surrounded by lower highs or higher lows, respectively.

By connecting these fractals, the indicator constructs the upper and lower lines of the channel.

How to use the SHI Channel true Indicator for MT4?

The above GBP/USD H4 chart shows the indicator on the chart. You can analyze the slope and direction of the channel to determine the prevailing trend. An upward-sloping channel suggests an uptrend, while a downward-sloping channel indicates a downtrend.

The middle line of the channel acts as a reference point for gauging the overall trend and potential reversal areas.

Breakouts from the channel can signal potential trend reversals or the beginning of a new phase in the price movement.

You can watch for price breaking above the upper line in an uptrend or below the lower line in a downtrend to initiate trades in the breakout direction.

It’s important to note that the SHI Channel true Indicator should be used with other technical analysis tools and indicators.

To enhance the strategy’s effectiveness, consider using additional technical indicators or tools to confirm the signals provided by the SHI Channel true Indicator.

Conclusion
The SHI Channel true Indicator for MT4 employs a Fractal-based strategy to create price channels consisting of upper, lower, and dotted middle lines. This indicator is a valuable tool for traders, providing visual representations of support and resistance levels within the channel.