Shi Channel Indicator is a metatrader indicator usually used in forex trading. There isn’t much information about how to use Shi channels but in essance they are just automatically drawn channels.
When traders first use this indicator it is not unusual to hear them complain that this indicator repaints. Shi Channels do not repaint but do re-calculate in real time. The difference being that a channel is not meant to be treated as an absolute price level. As with all channels and trendlines there are many different possibilities for their placement. Shi channel indicator takes the guess work out off where to place them.
The fact that these types of indicators redraw can be a benefit but can also be a downfall. It all depends on how you trade them. If you treat them as moving resistance they can only help in your trading.
There are several ways to use Shi Channel Indicators. You may use some or combine all of the following:
1) Touch of one of the lines=Wait for reversal signal from another inidcator (maybe use “no lag dots” indicator).
2) Use the direction of the shi channel to identify the “trend”.
3) Use channel lines to close positions
4) Only trade one half of the channel with stop at the other half in direction of “trend”.
5) Only trade when the shi channel is wide. Avoid narrow channels.
6) Use multiple channels using MTF Shi Channel Indicator.
As with all indicators do not rely on them blindly. Use stops to protect your capital and limit your losses.