Ifractal Channel Indicator

Description

The Ifractal channel is an indicator that consists of two lines. By default, the line has a silver color, but you can change it for clear signals. The indicator consists of two lines that form a channel that you can use to determine the market trend and derive buy and sell signals.

How To Use the Indicator for Buy and Sell Signals

The indicator gives buy and sell signals depending on the slope of the channel. The channel band also works as resistance and support levels.

Buy Signal

The indicator gives a buy signal when it is facing upwards. Buy when the price action touches the low band, and the channel is in an uptrend. This means you enter at a swing low.

Sell Signal

Sell when the channel is trending downwards, and the price touches the upper line.

Real Life Trading Examples

As shown by the euro against the US dollar pair in the H4 timeframe, the indicator forms a channel that encloses the price action. It gives a sell signal when the price touches the upper band, and the channel is slanting downwards.

Similarly, you should be ready to enter a long position when the price touches the lower band, the channel is moving upwards.

If the chance is flat, you will want to stay out of the market, which indicates the market is consolidating and not trending.

Conclusion

The Ifractal channel is a great trading tool for various strategies, including trend traders. It forms a channel within two lines. It gives a sell signal when the price touches the upper band and a sell signal when the price touches the lower line. You can use it to enhance signals by other indicators.