Price Channel Stop is
a powerful VertexFX indicator that provides a trend breakout trading strategy.
It employs the concept of trend breakout to trade in the direction of the
dominant trend. At first step, the highest High and the lowest Low of the
recent CHANNEL_PERIOD bars is calculated.
In the next step, the
difference between the highest High and lowest Low is multiplied by RISK. This
value is added to the highest High - and is termed the upper breakout level. Likewise,
this it is subtracted from the lowest Low and termed as lower breakout level.
When the candle
closes above this Upper Breakout Level, a Buy signal is generated, and when the
candle closes below the Lower Breakout Level, a Sell signal is generated.
Buy: Place Buy position
at close of candle when the Cyan line is visible below the candle. Do not place
Buy trade if the candle has a gap-up opening. Place initial stop-loss below the
nearest Swing Low point. Place subsequent stop-loss slightly below the Cyan Buy
line.
Sell: Place Sell
position at close of candle when the Magenta line is visible above the candle.
Do not place Sell trade if the candle has a gap-down opening. Place initial
stop-loss above the nearest Swing High point. Place subsequent stop-loss slightly
above the Magenta Sell line.
To use Price Channel
Stop indicator download it from here, then place it at VertexFX VTL
directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on
the tree and select refresh or restart your client station and you will find
under VTL local scripts in your client
terminal.
You can check this
video that talks about Price Channel Stop indicator: