87# Double Channel Breakout
Momentum strength RSI Filter
Channel breakout strategy
Submit by Dimitri
Double Channel breakout is breakout trading system filtered by Relative Strength Index 11 period. The system is based on a dual channel of moving averages when the signal is generated when the fast channel starts going under / over the slow one with RSI (11) with higher / lower values 65/35.
This strategy is suitable for building an EA.
Time Frame 15 min or higher.
Best time frame H1.
Currency pairs: majors and minors.
Moving Average (20, Simple, High)
Moving Average (20, Simple, Low)
Moving Average (5, Simple, High)
Moving Average (5, Simple, Low)
RSI (11, Levels 35, 65)
Trading Rules Double Channel Breakout
1. The price has pierced both channels up
2. RSI line crossed the 65 mark from the bottom up
1. The price has pierced both channels down
2. RSI line crossed mark 35 from top to bottom
There is a flat between the levels 35 and 65 of the RSI indicator (we do not trade for a breakdown)
Note:We do not enter if the breakout candle is more than 2 times larger than the previous one.
Aggressive TP = 15 pips for example EURUSD H1, GBP/USD 20-25 pips, AUD/USD 10 pips.
H15 Fast Target profit 7-18 pips.
Initial stop loss below/above the slow channel.
This is a winning strategy.
In the pictures Double Channel Breakout in action.
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