Download and unpack the archive with the product
Each buyer receives a product file and instructions on how to install and use by email after making a purchase. Download archive with product to your PC and extract. Next, follow the instructions below.
Copy the indicator to the MT4 root directory
Open the root directory of your MetaTrader platform and copy the Grabber indicator file to the “Indicators” folder. Follow the instructions in the pictures below:
Open the “MQL4” folder inside the root directory of your platform and find the “Indicators” folder inside.
Restart your platform
This is necessary for any changes you make to take effect.
Primary deals for a price reversal in the channel
Therefore, the extreme boundaries of our price channel hold the greatest significance. As previously mentioned, the primary orders of market participants are situated at these levels.
The upper limit of the channel represents the level at which BUY deals are executed. Conversely, the upper boundary of our adaptable price channel is associated with bearish orders that trigger a decline in quotes. Thus, when the price reaches this upper boundary, it is highly probable that the trend will reverse, prompting a downward movement. Consequently, the upper level of the price channel serves as a selling point.
The lower boundary of the channel is designated for executing SELL deals. At the lower level of our adaptable price channel, bull orders prevail, compelling quotes to ascend. Consequently, when the price reaches this lower boundary, it is highly likely that the trend will reverse, leading to an upward movement. Hence, the lower level of the price channel represents a buying opportunity.
The central line of the Grabber serves as a profit-taking level.
Positioned at the moving average level, the central level of our channel indicator adheres to the conventional principle that, regardless of the price movement, it tends to its mean value, that is, to the center of the price channel. If observed closely, the quotes of any asset mostly revolve around their average. As a result, after bouncing off the upper or lower boundary of the price channel, the quotes tend to return to the center of the channel. Therefore, if we engage in rebound deals from the channel boundaries, the most suitable place to lock in profits is the central line of the price channel. In fact, asset quotes are inclined to return to this level as per the laws of financial market gravity (i.e., quotes tend to their average value). Consequently, the central level of the price channel indicator represents the ideal level for taking profits.
Additional deals
Our indicator is adaptable to all market conditions that may arise, and it is our responsibility to adjust our trading operations in a timely manner in response to new indicator signals. To achieve this, we have devised a grid averaging system (make-up tactics) that applies in situations where a significant market force (such as a large accumulation of bear or bull orders) drives quotes far beyond the boundaries of the price channel. During such instances, there is an opportunity to execute additional transactions at more favorable prices. This is because quotes invariably tend to their average value, and there will come a point when the market will reverse, and the price will touch the mean level of the adaptive channel. Consequently, we can register profits on several trading positions simultaneously.
Our channel indicator’s manual settings comprise options for computing the location of multiple supplementary trades. Among these settings is the “number limit” variable, which enables us to specify the number of additional deals to be executed.
The “diap limit” variable enables us to calculate the point-based distance between additional transactions. In this manner, we preprogram the indicator to exhibit the levels where we can add more buy or sell deals in the future. The price channel indicator will display these levels immediately after the quotes hit the price channel boundaries, offering a trading opportunity.
What do the price channels tell us?
Price channels are an essential tool for analyzing the dynamics of price movements as they indicate longer-term trends beyond the shorter-term growth and decline waves. By using price channels, we can predict with a high degree of certainty whether asset quotes will rise or fall in the future. With such knowledge about the direction and duration of price waves, traders can make profitable deals by placing trades in the right direction.
The significance of price channels is further amplified by their ability to identify support and resistance levels, which are vital for any trading strategy. These levels enable traders to determine the optimal entry and exit points on the chart, helping to maximize profitability.
It is worth emphasizing the importance of support and resistance levels, which will frequently feature in your trading endeavors. Mastery of these levels is critical to developing a successful trading strategy.
Support levels are critical areas on a chart where the price typically rebounds upwards. But how are these levels established? Support levels form as buy orders accumulate from traders who anticipate asset growth. Put simply, at the level where the price rebounds upwards, bulls (traders who bet on a price increase) tend to purchase the asset or make trades in favor of its price growth.
Resistance levels represent levels on a chart where sell orders from bears (traders who bet on a decline in an asset’s price) tend to cluster. Essentially, at these levels, market bears typically sell their assets.
The strength of the market depends on the level of buying and selling activity. If there are more buyers, the quotes will move upwards with more power, and if there are more sellers, the quotes will move downwards with more force. Therefore, the market’s driving force is the supply and demand ratio. Our adaptive price channel indicator demonstrates the actual boundaries of the channel on which sellers or buyers are expected to be most active. We can predict that the price will start declining at the level where sellers will be most active, and we can predict that the quotes will start rising at the level where buyers will be most active.
The best conditions for trading
If you are trading on a channel strategy, then you should remember a few fundamental rules. These rules will always work on almost any asset, namely:
- The higher the timeframe, the more accurate the channel indicator signals.
This rule means that using higher timeframes, such as H1 or H4, will provide more accurate signals from the channel indicator. This is because on higher timeframes, price movements are more stable and less erratic compared to lower timeframes, which can have a lot of noise and false signals. Therefore, if you want to use the channel strategy, it’s best to use higher timeframes for more reliable signals. - There are trend assets on which you will receive less profit and flute assets on which you will receive more profit. This rule emphasizes the importance of choosing the right assets to trade with the channel strategy. Some assets have a tendency to trend strongly, which means that price movements can be more predictable, but the potential profit from trading with the channel strategy may be lower. On the other hand, some assets may have more price fluctuations, which can provide more opportunities for profits when trading with the channel strategy. Therefore, it’s important to choose assets that fit well with the channel strategy you’re using.
- Trading time also matters – the beginning of the European session and the beginning of the American session are not the best time to trade. At this time, a trend is observed on most assets.This rule highlights the importance of choosing the right time to trade with the channel strategy. During the beginning of the European or American sessions, there may be increased volatility and trend movements on most assets, which can make trading with the channel strategy more difficult. Therefore, it’s best to choose a time when the market is more stable and less volatile.
- For trading, it is best to choose brokers that give good leverage so you can easily add additional transactions without much risk to your deposit. This rule emphasizes the importance of choosing the right broker for trading with the channel strategy. Using a broker that provides good leverage can be beneficial for adding additional trades without risking too much of your deposit. However, it’s important to note that using leverage can also increase the risk of losing your funds, so it’s important to use it wisely and with caution.
The best timeframe for trading
If you are a new trader who struggles with finding time to trade and analyze the market, we suggest starting with H1 or H4 timeframes. These channels have a slower pace, giving you more time to attend to your daily activities while keeping an eye out for trading signals. This allows you to analyze the market, make a decision, and execute a trade when a signal appears.
On the other hand, M1, M5, and M15 are faster timeframes where quotes move rapidly. To trade on these timeframes, you will need to dedicate your attention entirely to trading and monitoring the market constantly. This is the only way you will be able to spot a trading signal on time and manually manage it until the trade closes.
Another benefit of using higher timeframes such as H1 and H4 is that there are fewer trend movements that may not be useful for scalping strategies in the price channel.
Flat assets
It is important to consider the characteristics of assets when selecting trading instruments for the price channel strategy. Major currency pairs like EURUSD, USDCHF, USDJPY, and USDCAD are known for their strong trend movements and shallow price pullbacks, making them less suitable for this strategy. However, there are plenty of other assets that are more suitable, such as currency pairs that include GBP (such as GBPUSD, GBPCAD, GBPCHF, GBPAUD, and GBPNZD) or cross-rates like AUDCAD, AUDCHF, and EURCHF that have a predominance of flat movements or larger price pullbacks. These types of assets can be found across dozens of currency pairs, providing ample opportunity for profitable trades using the price channel strategy. Cryptocurrencies like BTCUSD can also be suitable for this strategy.
Time to trade
This rule is particularly important when scalping major currency pairs, as all currency pairs are affected by the trading session time. It’s important to remember that the start of the European or American session can bring a surge of volatility and lead to a trend without pullbacks, which could result in financial losses. If you want a calmer trading experience without stress, it is recommended to choose the second half of the American session or later.
