Those lines are the support and resistance lines of this group of bars.
The idea is detecting those lines, decide if this is a good channel or not, and trade when the price touches the lower line for long and vice verse for short.
The stop loss should be very small since it's a resistance line and the target should be near the support line.
The first challenge in writing such and expert advisor is find the best support/resistance zone. Then decide if it's a good zone for trading.
I already implemented the channel detection. I also implemented the trading section and the results are not bad. It has a small profit factor and now I am facing the second mission: decide if the calculated zone has a trading potential or not.
By visual testing the EA I see a lot of good trades. It makes a lot of trades (I tested it on EURUSD 15 minutes time frame) and it worth further development from my point of view.
My EA draws the lines for testing purposes.
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An example for a trade made by channel EA |
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