I am using SHI Channel in helping me to determine the the chart pattern.. and Fibbonaci to set my target profit..
I use this for more than 6 months, and its really boost my confidence in forecasting the next trend or pattern. As a part time traders, i could make 500 pips for 2 weeks.. well it's good enough for me.. the most important thing is, i'm no longer worry of losing my FX money.
Its pretty accurate especially if you read it using 1day Time Frame and 4hr TF (for GbpJpy and all Jpy pairs) .. thru my experiment (my style of trade on GbpJpy), the SHI Channel is not suitable for TF 1H and below..
To play safe, you have to be patient on the entry level...
You can use SHI Channel with others indicators that you are comfortable with.. as for me, I use SHI Channel as to confirm what is the next pattern gonna be..
Below is the few articles about SHI Channel:-
A. 1st article
"Hi there!
Our indicator today is not one of the popular indicators yet, but it’s growing popularity among the Forex traders in their forum; the SHI Channel indicator.
Channel trading in general is one of less use trading method, however it has its fan who trading the two methods of channels: Channel direction follower and Channel breakout.
The MetaTrader version of the SHI Channel indicator (SHI_Channel_true.zip) was created by Shurka & Kevin
How does the SHI Channel indicator work?
The SHI Channel indicator and as the all of the channel indicator uses the highest high and lowest low of the price to determine the upper and lower bands of the channel.
In the SHI Channel The channel is calculated according to the given period of calculation and the time frame of the used chart, and the channel is self-adjusted (Like the Bollinger Bands).
As you see in figure 1 there are two thick lines that indicates the upper and lower channel and a dashed center line.
The channel gives the overall direction of the price movement - up or down - and may change from time to time, specially if it used with a low timeframe (1, 5 and 5 minutes).
How to trade using the SHI Channel indicator?
Actually you can’t trade with the SHI Channel indicator alone, it will not tell you when to enter the trade neither when to exit, The SHI Channel indicator telling you the overall direction of the price trend and the channels with the middle line warn you how much the trend is strong or weak, however , you have to use another indicators to generate the entry/exit signals...For more info you can go to :http://forex.eazel.com/2006/06/29/shi-channel-indicator/ "
So.. for entry and exit.. i will use chart pattern.. you don't have to be an expert in chart pattern.. to make hundred bucks a month in fx.. i only focus on double top or bottom pattern, head n shoulder pattern, inverse Head n Shoulder, Ascending and descending triangle (the breakout of these triangle at 4h can give you about 400 pips)
B. 2nd article
1. DIRECTION.
SHI channels which automatically recalculate in real time gives us the direction we are going to trade. If slope is down we are only looking to sell, if slope is up we are only looking to buy.
If the channel is thin (narrow) we dont trade .
If price falls outside the channel we dont trade(unless in a trade already) we wait for a new channel to form.
2.ENTRY/EXIT.
Remembering we ONLY trade in the given direction of the slope of the SHI channel!!
for more info go to :http://fxovereasy.50webs.com/TheSystem.html
other links on SHI Channel:
http://tradingmethod01-fxinside.blogspot.com/
http://www.sasyaonline.com/forex-related/forex-strategy-shi-channel-method.html
