The Trend Channel indicator is extremely important for the whole system here as, like the name suggests, it shows us the trending environment and it does so through a channel that moves with the market.
The fact that it moves together with the market is the most tricky part in the sense that it makes harder to evaluate past signals and see if this strategy really works or not. We did find a solution to this problem though, as we identified potential signals and then saved the screens for further evaluation for end of day to see if the potential binary option was expiring in the money or not.
This channel is formed out of four lines, two upper green lines and two lower green lines and if the channel is a rising one, it is bullish, or if it is a falling one, it is bearish.
The recording that comes with this sub chapter shows you how to apply the Trend Channel Indicator to a chart and how to interpret it, then we will add it to our template for trading the binary options system that makes the object of this project.