Smart Trading Indicators
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  • Before You Start
    • 🚀What is Smart Trading Indicators?
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    • ❓FAQs
      • Are you planning to integrate more features or tools in the future?
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      • What is Smart Trading Indicators?
  • Partners
    • 📈TradingView
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      • ⭐Highlighted Features of TradingView
      • 📐How to create and use an account in tradingview?
      • 💎Why is TradingView pivotal for Smart Trading Indicators?
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  • Gettin Started
    • ⚙️SetUp Indicators
      • 📦Install/Setup Smart Trading Indicators on TradingView
      • 🔢How to customize the indicators? (Colors and parameters)
      • 🔔How to SetUp Buy and Sell Alerts on TradingView
    • ▶️Videos and Tutorials
      • Tutorials in English
      • Tutoriales en Español
  • Our Indicators
    • 📖Indicators User Manual
    • *️Advanced Risk Management with Automatic Trailing Stop
    • 🔨Hammer And Pump
      • General description - Hammer And Pump
      • Practical application: how and when to use it? - Hammer And Pump
      • Interpretation of signals or results - Hammer And Pump
      • Graphics or examples of what it looks like in action - Hammer And Pump
      • Frequently asked questions about Hammer And Pump
    • 🔥Shadow Trend
      • General description - Shadow Trend
      • Practical application: how and when to use it? - Shadow Trend
      • Interpretation of signals or results - Shadow Trend
      • Graphics or examples of what it looks like in action - Shadow Trend
      • Frequently asked questions about Shadow Trend
    • ✅Buy or Sell Estimation
      • General description - Buy or Sell Estimation
      • Practical application: how and when to use it? - Buy or Sell Estimation
      • Interpretation of signals or results - Buy or Sell Estimation
      • Graphics or examples of what it looks like in action - Buy or Sell Estimation
      • Frequently asked questions about Buy or Sell Estimation
    • 🦬Bull And Bear Attack
      • General description - Bull And Bear Attack
      • Practical application: how and when to use it? - Bull And Bear Attack
      • Interpretation of signals or results - Bull And Bear Attack
      • Graphics or examples of what it looks like in action - Bull And Bear Attack
      • Frequently asked questions about Bull And Bear Attack
    • 💎Hull
      • General description - Hull
      • Practical application: how and when to use it? - Hull
      • Interpretation of signals or results - Hull
      • Graphics or examples of what it looks like in action - Hull
      • Frequently asked questions about Hull
    • 💸Glory Channel Signals
      • General description - Glory Channel Signals
      • Practical application: how and when to use it? - Glory Channel Signals
      • Interpretation of signals or results - Glory Channel Signals
      • Graphics or examples of what it looks like in action - Glory Channel Signals
      • Frequently asked questions about Glory Channel Signals
    • 🚨Range Signals
      • General description - Range Signals
      • Practical application: how and when to use it? - Range Signals
      • Interpretation of signals or results - Range Signals
      • Graphics or examples of what it looks like in action - Range Signals
      • Frequently asked questions about Range Signals
    • ⏰Time to Buy or Sell
      • General description - Time to Buy or Sell
      • Practical application: how and when to use it? - Time to Buy or Sell
      • Interpretation of signals or results - Time to Buy or Sell
      • Graphics or examples of what it looks like in action - Time to Buy or Sell
      • Frequently asked questions about Time to Buy or Sell
    • 🛎️Channel Trend Signals
      • General description - Channel Trend Signals
      • Practical application: how and when to use it? - Channel Trend Signals
      • Interpretation of signals or results - Channel Trend Signals
      • Graphics or examples of what it looks like in action - Channel Trend Signals
      • Frequently asked questions about Channel Trend Signals
    • 🟢Buy or Sell Ribbon
      • General description - Buy or Sell Ribbon
      • Practical application: how and when to use it? - Buy or Sell Ribbon
      • Interpretation of signals or results - Buy or Sell Ribbon
      • Graphics or examples of what it looks like in action - Buy or Sell Ribbon
      • Frequently asked questions about Time to Buy or Sell
    • 🧬Hybrid Trends
      • General description - Hybrid Trends
      • Practical application: how and when to use it? - Hybrid Trends
      • Interpretation of signals or results - Hybrid Trends
      • Graphics or examples of what it looks like in action - Hybrid Trends
      • Frequently asked questions about Hybrid Trends
  • Our Backtestings
    • 🤝Results and backtesting speak for themselves
    • 📊What is backtesting?
      • ✅Importance of backtesting in trading
    • 📚Our Backtesting Methodology
      • 🗒️Historical data selection criteria
      • ⚙️Tools and software used
      • 📄Interpretation and analysis of results
    • 🏆Results by Indicator
      • 🔨Hammer And Pump
        • BTC - Backtesting Hammer And Pump
          • 🔨BTCUSD - 1D - 71.29% (Hammer And Pump)
          • 🔨BTCUSD - 4h - 121.09% (Hammer And Pump)
          • 🔨BTCUSD - 1h - 421.40% (Hammer And Pump)
          • 🔨BTCUSD - 30m - 220.67% (Hammer And Pump)
          • 🔨BTCUSD - 15m - 108.62% (Hammer And Pump)
        • ETH - Backtesting Hammer And Pump
          • 🔨ETHUSD - 1D - 82.22% (Hammer And Pump) (To be defined)
          • 🔨ETHUSD - 4h - 114.93% (Hammer And Pump)
          • 🔨ETHUSD - 1h - 310.40% (Hammer And Pump)
          • 🔨ETHUSD - 30m - 275.04% (Hammer And Pump) (To be defined)
          • 🔨ETHUSD - 15m - 202.16% (Hammer And Pump)
      • 🔥Shadow Trend
        • BTC - Backtesting Shadow Trend
          • 🔥BTCUSD - 1D - 59.30% (Shadow Trend)
          • 🔥BTCUSD - 4h - 589.27% (Shadow Trend)
          • 🔥BTCUSD - 1h - 630.78% (Shadow Trend)
          • 🔥BTCUSD - 30m - 1064.97% (Shadow Trend)
          • 🔥BTCUSD - 15m - 775.61% (Shadow Trend)
        • ETH - Backtesting Shadow Trend
          • 🔥ETHUSD - 1D - 77.36% (Shadow Trend)
          • 🔥ETHUSD - 4h - 314.83% (Shadow Trend)
          • 🔥ETHUSD - 30m - 1028.76% (Shadow Trend)
          • 🔥ETHUSD - 15m - % (Shadow Trend) (To be defined)
      • 💎Hull
        • BTC - Backtesting Hull
          • 💎BTCUSD - 1D - 98.04% (Hull)
          • 💎BTCUSD - 4h - 942.90% (Hull)
          • 💎BTCUSD - 1h - 351.85% (Hull)
          • 💎BTCUSD - 30m - 663.37% (Hull)
          • 💎BTCUSD - 15m - 342.73% (Hull)
        • ETH - Backtesting Hull
          • 💎ETHUSD - 4h - 501.82% (Hull)
          • 💎ETHUSD - 1h - 339.63% (Hull)
          • 💎ETHUSD - 30m - 208.93%
      • 🚨Range Signals
        • BTC - Backtesting Range Signals
          • 📣BTCUSD - 1D - 148.42% (Range Signals)
          • 📣BTCUSD - 4h - 311.02% (Range Signals)
          • 📣BTCUSD - 1h - 346.58% (Range Signals)
          • 📣BTCUSD - 30m - 414.84% (Range Signals)
        • ETH - Backtesting Range Signals
          • 📣ETHUSD - 1D - 159.96% (Range Signals)
          • 📣ETHUSD - 4h - 567.28% (Range Signals)
          • 📣ETHUSD - 1h - 394.85% (Range Signals)
          • 📣ETHUSD - 30m - 406.55% (Range Signals)
          • 📣ETHUSD - 15m - 353.14% (Range Signals)
      • 🛎️Channel Trend Signals
        • BTC - Backtesting Channel Trend Signals
          • 🛎️BTCUSD - 4h - 521.83% (Channel Trend Signals)
          • 🛎️BTCUSD - 1h - 275.33% (Channel Trend Signals)
          • 🛎️BTCUSD - 30m - 610.72% (Channel Trend Signals)
        • ETH - Backtesting Channel Trend Signals
          • 🛎️ETHUSD - 4h - 659.66% (Channel Trend Signals)
      • 💸Glory Channel Signals
        • BTC - Backtesting Glory Channel Signals
          • 💸BTCUSD - 1D - 90.40% (Glory Channel Signals)
          • 💸BTCUSD - 4h - 94.45% (Glory Channel Signals)
          • 💸BTCUSD - 1h - 459.28% (Glory Channel Signals)
          • 💸BTCUSD - 30m - 922.18% (Glory Channel Signals)
        • ETH - Backtesting Glory Channel Signals
          • 💸ETHUSD - 4h - 42.87% (Glory Channel Signals)
          • 💸ETHUSD - 1h - 315.63% (Glory Channel Signals)
          • 💸ETHUSD - 30m - 785.17% (Glory Channel Signals)
      • 🟢Buy or Sell Ribbon
        • BTC - Backtesting Buy or Sell Ribbon
          • 🟢BTCUSD - 1D - 75.04% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 4h - 540.29% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 1h - 1000.08% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 30m - 668.26% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 15m - 550.87% (Buy or Sell Ribbon)
        • ETH - Backtesting Buy or Sell Ribbon
          • 🟢ETHUSD - 1D - 76.59% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 4h - 207.50% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 1h - 483.88% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 30m - 643.08% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 15m - 334.95% (Buy or Sell Ribbon)
      • 🧬Hybrid Trends
        • BTC - Backtesting Hybrid Trends
          • 🧬BTCUSD - 1D - 33.74% (Hybrid Trends)
          • 🧬BTCUSD - 4h - 106.96% (Hybrid Trends)
          • 🧬BTCUSD - 1h - 265.68% (Hybrid Trends)
          • 🧬BTCUSD - 30m - 353.71% (Hybrid Trends)
          • 🧬BTCUSD - 15m - 111.50% (Hybrid Trends)
        • ETH - Backtesting Hybrid Trends
          • 🧬ETHUSD - 1D - 35.69% (Hybrid Trends)
          • 🧬ETHUSD - 4h - 111.26% (Hybrid Trends)
          • 🧬ETHUSD - 1h - 285.60% (Hybrid Trends)
          • 🧬ETHUSD - 30m - 373.89% (Hybrid Trends)
          • 🧬ETHUSD - 15m - 116.04% (Hybrid Trends)
    • 🪙Results by Asset
      • 📈BTC • Bitcoin | Backtesting Results
      • 📈ETH • Ethereum | Backtesting Results
    • ❓Frequently Asked Questions (FAQs) about Backtesting
  • Smart A.I Alerts
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  • Exchanges
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      • 👤How to Create an Account on Bitget?
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    • Bybit
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      • How to Create an Account on Bybit?
    • KuCoin
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      • How to Create an Account on KuCoin?
    • MEXC
      • MEXC as a company
      • How to Create an Account on MEXC?
    • OKX
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      • How to Create an Account on OKX?
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      • How to Create an Account on ATFX?
    • IronFX
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      • How to Create an Account on IronFX?
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On this page
  • Integration with TradingView Platform:
  • Select Timeframe:
  • Adjust the HMA Period:
  • Modifiable Parameters in TradingView
  • Trend Identification:
  • Volatility Study using Channels:
  • Practical Tips:
  1. Our Indicators
  2. Channel Trend Signals

Practical application: how and when to use it? - Channel Trend Signals

PreviousGeneral description - Channel Trend SignalsNextInterpretation of signals or results - Channel Trend Signals

Last updated 1 year ago

The "Channel Trend Signals" indicator is designed to provide clarity and precision in an often tumultuous market. Understanding how and when to use it is crucial for maximizing its effectiveness.

Below, we will break down its practical application in detail:

Initial Setup

Integration with TradingView Platform:

  • Once you have added the indicator to your TradingView chart, you will be presented with various configuration options. These options allow you to customize the indicator to your needs and trading style.

Select Timeframe:

  • The indicator is flexible and can be used on various timeframes, from intraday trading (e.g., 5-minute charts) to long-term analysis (such as weekly charts). Your choice of timeframe will depend on your trading strategy. For example, a day trader might prefer 15-minute charts, while a position trader might opt for daily or weekly charts.

Adjust the HMA Period:

  • The HMA (Hull Moving Average) period determines the sensitivity of the indicator. A lower number will make it more sensitive to price changes but could increase false signals. A higher number can smooth the HMA, reducing false signals but potentially delaying entry or exit.

Modifiable Parameters in TradingView

These are the parameters that can be modified in TradingView:

  • Enable strategy backtesting on chart: By enabling this option, you can conduct backtesting on the chart to assess how this strategy would have performed in the past. It's advisable to use the suggested settings and activate the 'Trailing Stop' control unless you're an expert.

  • Activate Trailing Stop Control: This option allows you to activate the Trailing Stop control, which is a tool for managing risk in your trades. Essentially, it automatically adjusts to protect your profits as the price moves in your favor.

  • Use Recommended Strategy for BTC/USD • [Timeframe]: By choosing one of these options, the indicator will automatically apply the optimal settings for the BTC/USD pair for the specified timeframe (15min, 30min, 1h, 4h, 1D).

  • Use Recommended Strategy for ETH/USD • [Timeframe]: By choosing one of these options, the indicator will automatically apply the optimal settings for the ETH/USD pair for the specified timeframe (15min, 30min, 1h, 4h, 1D).

  • Use Custom Strategy Parameters Settings: This option is for advanced users who wish to customize the strategy parameters. If you're not an expert, it's recommended not to enable this option.

  • Timeframe (tf): Represents the time resolution of the indicator, determining the time interval in which you want the indicator to operate. Available options range from short intervals like "1" minute to longer ones like "D" for daily and "W" for weekly. It helps traders adjust the indicator for different timeframes, whether for intraday or long-term trading.

  • Source (scr): It is the price source to which the indicator is applied. By default, it's "hl2," which is the average of high and low prices over a period. This allows traders to focus on different reference points, such as the opening price, closing price, high, low, etc.

  • Period (length): Defines the number of bars used to calculate the indicator. A longer period will provide smoother signals but potentially delayed ones, while a shorter period makes the indicator more sensitive to price changes.

  • Shift (shift): Shifts the indicator a certain number of bars on the chart. This helps traders anticipate or delay signals to suit their strategies.

  • Show cross over/under (showcross): A boolean option to show/hide crossover signals on the chart. Crossovers can represent buy or sell signals, and enabling this helps traders visualize these points on the chart.

  • Channel Type (channelType): Allows the trader to select the type of channel they want to display, with options like "NONE," "Donchian," "Bollinger," and "Envelope." Each channel type has its own methodology and can be useful in different market situations.

  • Channel Length (channelLen): Determines the number of bars used to calculate the channels, adjusting their sensitivity to price changes.

  • Envelope % (envPer): It is the percentage that defines the distance between the moving average and the upper and lower channels for the "Envelope" type. It allows traders to adjust the width of overbought/oversold channels according to their preference.

In Action: Detecting Trading Opportunities

Trend Identification:

  • HMA Cross: The crossing of HMA lines is a key signal that should be monitored. An upward cross could indicate an emerging bullish trend where the indicator will turn GREEN, presenting a buying opportunity. On the other hand, a downward cross could signal a bearish trend, in which case the indicator will turn RED, possibly serving as a selling signal.

Volatility Study using Channels:

  • Bollinger Bands: If the price touches or crosses the upper band, it may indicate that the asset is overbought, and there could be a downward reversal. Similarly, if the price touches or crosses the lower band, it could indicate an oversold condition, and we may expect an upward movement.

  • Donchian Channel: This channel displays the highs and lows of a specific period. A breakout above the channel could indicate strength and be a buy signal, while a breakout below could indicate weakness and be a sell signal.

  • Envelope: Envelopes are calculated as a fixed percentage above and below a moving average. When the price deviates significantly outside the envelope, it could be a signal that the price will return to the mean.

Practical Tips:

  • Combination with Other Indicators: While "Channel Trend Signals" is powerful on its own, combining it with other indicators (such as RSI, MACD, or support/resistance) can provide additional confirmation and improve signal accuracy.

  • Risk Management: Always ensure you set appropriate stops and limits to protect your capital. No indicator is infallible, and it's essential to safeguard against unexpected market moves.

  • Practice: Before applying any strategy in a live environment, it's essential to practice on a demo account to become familiar with the indicator and refine your strategy.

Always remember that technical indicators are tools and not guarantees. Using "Channel Trend Signals" correctly can provide a significant advantage in the market. With practice and experience, it can become an integral part of your trading toolbox.

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