The ISHA Forex Channel indicator for Metatrader 5 creates a trend channel on the price chart that can be used for trade entry and take profit.
Essentially, the ISHA channel accurately tracks short-term trends and proves beneficial for both scalpers and day traders.
To assess the market state using the ISHA indicator, adhere to these guidelines:
- An upward sloping ISHA channel indicates a bullish trend.
- A downward sloping ISHA channel indicates a bearish trend.
The indicator includes various inputs and parameters such as period, colors, etc.
We recommend familiarizing yourself with this technical indicator and conducting thorough testing on a demo account over an extended period of time.
Effectively, the ISHA channel indicator can be integrated into any trading strategy to validate short-term trends or independently employed as a buy/sell channel tool.
Download Indicator
tirone_levels_x3.mq5 Indicator (MT5)
Chart Example EUR USD M15
The image below illustrates what the ISHA Forex Channel indicator looks like when applied to the MT5 chart.
How To Buy And Sell Trading Instruments With The ISHA Forex Channel Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the candle closes above the upper dashed green channel line.
- Open a buy market order and set a stop below the trading channel.
- Exit the buy trade for a risk/reward ratio of 1.5, or await a sell signal.
Sell Signal
- A sell signal is given when the candle closes below the lower dashed red channel line.
- Open a sell market order and set a stop above the trading channel.
- Exit the sell trade for a risk/reward ratio of 1.5, or await a buy signal.
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tirone_levels_x3.mq5 Indicator (MT5)
Channel Breakouts with Super Trend CCI Confirmation Strategy For MT5
This strategy uses the Isha Forex Channel Indicator to spot price channel boundaries and potential breakout zones, while the Super Trend CCI Indicator confirms momentum and trend direction.
Together, they help traders enter trades on reliable breakouts with strong momentum support.
Indicators Used
- Isha Forex Channel Indicator: Defines dynamic price channels and highlights breakout points.
- Super Trend CCI Indicator: Combines Super Trend and Commodity Channel Index (CCI) to indicate trend strength and momentum shifts.
Timeframes
Optimized for M15, M30, and H1 charts to capture short to medium-term moves.
Buy Entry Rules
- Price breaks above the upper boundary of the channel indicated by the Isha Forex Channel Indicator.
- The Super Trend CCI Indicator confirms bullish momentum (e.g., Super Trend green signal with CCI above zero).
- Enter a long trade on the close of the breakout candle.
- Place a stop-loss just below the channel upper boundary or recent swing low.
- Set a take profit at the next resistance zone or aim for a 1.5 to 2 times risk-reward ratio.
Sell Entry Rules
- Price breaks below the lower channel boundary as indicated by the Isha Forex Channel Indicator.
- The Super Trend CCI Indicator confirms bearish momentum (e.g., Super Trend red signal with CCI below zero).
- Enter a short trade on the close of the breakout candle.
- Set stop-loss just above the channel lower boundary or recent swing high.
- Target the next support level or use a fixed reward-to-risk ratio.
Strategy Tips
- Confirm breakouts with momentum signals from the Super Trend CCI to avoid false moves.
- Avoid trading when the Super Trend CCI shows conflicting signals or CCI is near zero, indicating weak momentum.
- Consider higher timeframe analysis to validate channel boundaries and trend direction.
Conclusion
Combining the breakout identification from the Isha Forex Channel Indicator with the momentum confirmation of the Super Trend CCI Indicator equips traders with a robust approach to trade strong channel breakouts with better precision and confidence.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the tirone_levels_x3.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
