M3 Predictive Channels

You are here:
Estimated reading time: 1 min

Predictive Channels

Predictive Channels is one of the new additions to Spectro M3. Within many charts, the price action works within specific patterns. One of the main formations is a channel.

 

Predictive Channels work with the idea that price will move within this channel, oscillating from tops to bottoms and vice versa. The channels have a centerline, which means when price moves within a channel, the price usually tends to return to the average, the middle.

 

The centerline thus is an excellent target for your trades.

 

When price moves within a channel, it can give you clear entry and exit points, whenever the price moves outside of the channels those represent excellent entry areas.

 

If the price above the top line that’s an excellent short area, if it’s below the bottom line, then you have a long solid entry. Try using the filtered price action feature for stronger signals.

 

Channels should be used in conjunction with any of the Spectro M3 tools. They provide proper entry levels but adding extra layers of confirmations will drastically diminish your risks and losses. Predictive Channels come with four settings; Aggressive, Moderate, Conservative, and Ultra Conservative. These settings refer to how far back the channels consider. The aggressive option being the lesser amount of price action data, to ultra-conservative taking into account a lot more price action history.

Was this article helpful?
Dislike 0
Views: 42