Introduction to the Channel Scalper M1 – M15 Indicator
Although the lower timeframes can often be very choppy and show no clear direction, it also has a very strong tendency to trend more often. This provides trend following trade opportunities for scalpers.
The Channel Scalper M1 – M15 Indicator is a tool developed to help traders identify trend following trading opportunities specifically for scalping.
What is the Channel Scalper M1 – M15 Indicator?
The Channel Scalper M1 – M15 Indicator is a trend following technical indicator which was developed to help traders identify trading opportunities available on the lower timeframes, particularly the M1 up to M15 timeframes.
The Channel Scalper M1 – M15 Indicator plots a line on the price chart which tends to trail the movements of price action. It plots an orange line below price action to indicate a bullish trend direction. Inversely, it also plots a yellow line above price action to indicate a bearish trend direction.
How the Channel Scalper M1 – M15 Indicator Works?
The Channel Scalper M1 – M15 Indicator uses the same concept as the Supertrend Indicator. It uses a multiple of the Average True Range (ATR) as a basis for identifying trend reversals. The line it plots represents the distance from the high or low of price action and the multiple of the ATR going against the direction of the trend, which is the same concept as the Supertrend Indicator.
The difference is that it also incorporates a Simple Moving Average (SMA) within its algorithm. It indicates trends and trend reversals based on the confluence of the ATR and the SMA based signals.
How to use the Channel Scalper M1 – M15 Indicator for MT4
The Channel Scalper M1 – M15 Indicator has no modifiable input variables within its indicator settings. The values it uses are constant. The only modification traders can do are visual modifications such as color changes and the thickness of the lines it plots.
This indicator can be used as a trend direction filter indicator. Traders can opt to trade only in the direction indicated by the Channel Scalper M1 – M15 Indicator line based on the color and location of the line.
It can also be used as a trend reversal signal indicator based on the shifting of the line and the changing of the color of the line. However, traders should incorporate other technical indications as a confluence when using this as an entry signal.
It can also be used as a basis for placing and trailing stop losses using the line as the marker where the stop loss should be placed.
Buy Trade Setup
When to Enter?
Open a buy order as soon as the Channel Scalper M1 – M15 Indicator line shifts below price action and changes to orange.
When to Exit?
Trail the stop loss below the Channel Scalper M1 – M15 Indicator line until stopped out in profit.
Sell Trade Setup
When to Enter?
Open a sell order as soon as the Channel Scalper M1 – M15 Indicator line shifts above price action and changes to yellow.
When to Exit?
Trail the stop loss above the Channel Scalper M1 – M15 Indicator line until stopped out in profit.
Conclusion
Although this indicator was developed for scalpers, it is also useable for day trading and swing trading.
This indicator can be an effective trend reversal signal indicator. However, it is not perfectly accurate. As such, it is best to find confluences with other technical analysis signals when using this as an entry signal.
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