Thursday, 8 December 2011

The Channel System: TTM, TMA Price Zone, SHI Channel and High-Low ZigZag

I've been fooling around a lot with the TTM scalper indicator and TMA Price Zone indicator (bot can be found at Forex-TSD elite section). Together they make excellent predictions of market tops and bottoms, without too may false signals. However, I do think that there is something missing with these two indicators, and I figure a good channel setup will solidify my prediction of these market tops and bottoms. To do this I'm using the SHI Channel indicator. Here's I picture of my setup:

  • SHI Channel (green parallel lines)
  • TMA Price Zone (blue and magenta dots; need to subscribe to Elite Section in Forex-TSD)
  • TTM Scalper (orange and blue bars; need to subscribe to Elite Section in Forex-TSD)
  • High-Low ZigZag (red lines)

The idea is the SHI Channel indicator will automatically show you where a potential channel is (keep in mind that this channel will recalculate to better fit the past price action), and the other indicators confirm the reversal when the price bounces off the channel. So, the strategy:

  • Price stops at the SHI Channel line
  • High-Low ZigZiag confirms the potential reversal point
  • TMA Price Zone displays a dot
  • TTM displays a coloured bar in the direction of the potential reversal