{"id":10454,"date":"2021-11-13T13:25:21","date_gmt":"2021-11-13T10:25:21","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=10454"},"modified":"2026-05-26T10:55:52","modified_gmt":"2026-05-26T07:55:52","slug":"trading-by-channel-scalping-strategy","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/11\/13\/trading-by-channel-scalping-strategy\/","title":{"rendered":"Trading by Channel Scalping Strategy"},"content":{"rendered":"\n

The ordinary idea of a \"channel\" in financial markets is a price movement in a flat<\/a> that has a clear upper and lower border. In such a case, traders either check for a bounce off the borders of the channel, or a breakaway in this or that direction and thus assess the potential of further price movements.<\/p>\n\n\n\n

\"An<\/a>
An example of a sideways movement in EUR<\/a>\/NZD<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

In the Channel strategy, Moving Averages<\/a> are used for setting this range. As the authors of the strategy say, those help find the beginning of the trend. The trader only needs to follow the trend by the rules.<\/p>\n\n\n\n

\"Moving<\/a>
Moving Averages on a EUR\/USD chart<\/em><\/figcaption><\/figure>\n\n\n\n

In this article, you will see how to see such a channel in Moving Averages and trade by the trend on small timeframes<\/a> that are just beginning.<\/p>\n\n\n\n

<\/span><\/a>Description of the Channel strategy<\/span><\/h2>\n\n\n\n

At the base of this strategy, apart from Moving Averages, lies RSI<\/a>. This is an oscillator that shows the force of the trend.<\/p>\n\n\n\n

When the values of the indicator rise above the level of 50, we can conclude that bulls<\/a> are stronger than bears<\/a>, and the price is likely to go further upwards. However, if the price drops below 50, the bearish trend will probably stay.<\/p>\n\n\n\n

Many investors think that this combination of trend indicators<\/a> and oscillators<\/a> is the best for trading.<\/p>\n\n\n\n

\"RSI<\/a>
RSI<\/a> behavior<\/em><\/figcaption><\/figure>\n\n\n\n

The channel is set by two MAs out of the four used in the strategy. A breakaway of these MAs signals<\/a> the beginning of a trend, while the two remaining ones will show where to enter the market at the breakaway.<\/p>\n\n\n\n

\"Price<\/a>
Price movement after receiving signals by the Channel<\/em><\/figcaption><\/figure>\n\n\n\n
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<\/span>Setting up the strategy<\/span><\/h2>\n\n\n\n

To set up the strategy, add all the indicators<\/a> to the chart of the instrument. Let us look at the parameters in detail.<\/p>\n\n\n\n

Add and set up the MAs:<\/p>\n\n\n\n