Breaking of the Double Volatility Channel
This advanced M15 strategy uses a Double Volatility Channel composed of Moving Averages and RSI filters to catch explosive price moves. It is designed to filter out market noise and enter only when momentum is strong enough to sustain a trend.
Strategy Profile
Timeframe
M15 and Above
Pairs
All Pairs
Indicators
SMA + RSI (11)
1. Indicator Setup
This strategy relies on the interaction between a fast channel and a slow channel:
- RSI: Period 11, with Levels set to 35 and 65.
- Slow Channel: 20 SMA High and 20 SMA Low.
- Fast Channel: 5 SMA High and 5 SMA Low.
2. Entry Rules
Long Entry (Buy)
Trigger a buy trade when volatility expands upwards:
- Channel Break: The 5 SMA High line crosses ABOVE the 20 SMA High.
- Momentum: The RSI (11) is above 65.
Short Entry (Sell)
Trigger a sell trade when volatility expands downwards:
- Channel Break: The 5 SMA High line crosses BELOW the 20 SMA Low.
- Momentum: The RSI (11) is below 35.
Exit Rules
- Stop Loss (Buy): Place at the 5 SMA Low level.
- Stop Loss (Sell): Place at the 5 SMA High level.
- Take Profit: Close Buy when RSI drops below 65. Close Sell when RSI rises above 35.
Profit from Volatility: Turn every breakout into cash with FXRebate.
