Introduction to The Turtle Trading Channel Indicator
Price action traders identify trending markets based on swing highs and swing lows consistently forming either higher highs or lower lows. Price action and market flow traders also identify the swing highs and swing lows as support and resistance levels.
The Turtle Trading Channel Indicator is a trading tool which can be used for the same trading concept mentioned above, identifying reversals based on the breaks of the support or resistance levels.
What is The Turtle Trading Channel Indicator?
The Turtle Trading Channel Indicator is a trend following technical indicator which is based on price action, particularly the swing highs and swing lows of price.
This indicator plots two types of lines. The first line is a dotted line, which represents the short-term trend. The second line is a solid line, which represents the long-term trend.
The lines shift around price action to indicate the direction of the trend. The lines are below price action whenever the trend is bullish, and below price action whenever the trend is bearish.
The solid line also changes color to indicate trend direction. It plots a blue line to indicate a bullish trend, and a red line to indicate a bearish trend.
How the Turtle Trading Channel Indicator Works?
The Turtle Trading Channel Indicator uses an algorithm which detects the highs and lows over an n period of time. The dotted line has a lower n period as a preset, while the solid line has a higher n period.
The indicator then plots its lines based on the highest high or lowest low of price action moving against the direction of the identified trend. The rationale is that these levels are considered as the support or resistance levels of price action.
The indicator shifts and reverses whenever price action moves against the trend crossing over and closing on the opposite side of the lines. This can then be interpreted as a trend reversal.
How to use The Turtle Trading Channel Indicator for MT4
The Turtle Trading Channel Indicator has a few options within its indicator settings.
“Trade Period” refers to the n periods used for the solid line, while “Stop Period” refers to the n periods used for the dotted line.
“Strict” toggles the indicator to detect trend reversals on the highs and lows of a candle breaching the lines instead of the close of the candle.
“Display Alerts” toggles the trade signal alerts on or off.
Buy Trade Setup
When to Enter?
Open a buy order as soon as the lines shift below price action and the solid line changes to blue.
When to Exit?
Trail the stop loss below the lines until stopped out in profit.
Sell Trade Setup
When to Enter?
Open a sell order as soon as the lines shift above price action and the solid line changes to red.
When to Exit?
Trail the stop loss above the lines until stopped out in profit.
The version of the trade setup shown above is the more conservative trade setup. Traders may also trail the stop loss on the dotted line. However, doing so may cause trades to be prematurely stopped out.
Aside from being a trend reversal signal indicator, this indicator can also be used as a trend direction filter based on the location of the lines and the color of the solid line. Traders can opt to trade exclusively in the direction of the indicated trend for better trade accuracy.
MT4 Indicators – Download Instructions
The Turtle Trading Channel Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
The Turtle Trading Channel Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies
Recommended Forex MetaTrader 4 Trading Platform
- Free $50 To Start Trading Instantly! (Withdrawable Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
How to install The Turtle Trading Channel Indicator for MT4.mq4?
- Download The Turtle Trading Channel Indicator for MT4.mq4
- Copy The Turtle Trading Channel Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on The Turtle Trading Channel Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator The Turtle Trading Channel Indicator for MT4.mq4 is available on your Chart
How to remove The Turtle Trading Channel Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
The Turtle Trading Channel Indicator for MT4 (Free Download)
Click here below to download: