At the heart of the Forex Market, an overwhelming amount of trading software is available to assist traders in making informed decisions. One such software is TrueChannel, a Forex trading tool that offers a unique approach to analyzing price movement channels. This software stands out for its innovative use of algorithms to determine accurate trading signals.
TrueChannel: A Different Approach
Unlike the popular Donchian Channel which primarily focuses on assessing volatility, TrueChannel is designed to track real price movement channels. The software’s indicators are based on the premise that price movements occur in channels parallel to the time axis, with abrupt shifts from one channel to the next.
The TrueChannel software incorporates an indicator referred to as the Probabilities distribution of price (PDP). This indicator identifies these price movements, allowing the software to build similar channels based on simpler algorithms. This feature makes TrueChannel a powerful tool for Forex analysis.
Understanding the TrueChannel Indicator
The middle line of the TrueChannel indicator is characterized by horizontal segments of different lengths. Each segment follows the arithmetic mean of the surrounding price points. The construction of each segment continues until the variance or spread of the price points around it begins to exceed a predefined critical value. This process effectively tracks the moments of true price jumps.
The number of points plotted for each line segment is variable and depends on the market situation. However, it can range from Backstep to Depth, which are adjustable in the software settings. The smaller the Backstep, the smaller the lag in determining the start of the price jump.
TrueChannel Channel Construction
TrueChannel calculates the price variance relative to each segment of the middle line. The Channel width factor, which is set within the software settings, plots this variance on both sides of the segment. This method determines the true channel of price fluctuations.
For each segment, the lower (red) line of the channel can be set as StopLoss for buy orders, while the upper (blue) line can be set as StopLoss for sell orders. This functionality further enhances the software’s ability to assist in effective Forex trading strategies.
Advantages of the TrueChannel Indicator
One of the main advantages of the TrueChannel indicator is that it does not react to minor price volatility. This factor makes it a more optimal filter compared to other trading software. Furthermore, TrueChannel draws its channels not based on individual peaks and troughs, but on the true price movement channels identified by its unique set of algorithms.
FAQ
What is TrueChannel? TrueChannel is a Forex software that helps traders analyze real price movement channels accurately. It offers unique algorithms to create more effective trading signals compared to other software.
How does TrueChannel work? TrueChannel works by constructing horizontal segments along the middle line of the indicator, each following the arithmetic mean of surrounding price points. It calculates the price variance for each segment and plots it on either side, creating the true channel of price fluctuations.
What sets TrueChannel apart from other Forex software? Unlike other software, TrueChannel does not react to minor price volatility, making it an optimal filter. It also constructs its channels based on true price movement channels rather than individual peaks and troughs.
For a more comprehensive understanding of how TrueChannel works, you may watch independent testing of this product on the forexroboteasy.com website. Subscriptions for updates on the results of testing this product are also available.
We invite you to share your experience using this product. Your feedback is invaluable to us and other traders.
Please note that this is an independent product review and is written in the third person. The information provided is based on the product’s description and does not contain personal pronouns such as “our” or “my”.
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