DONCHIAN CHANNEL TRADING DOMINATION: This MACD Trading Setup Is VAPORIZING Market Makers In Seconds!

ForexPartners

Trading with Donchian Channels and the MACD (Moving Average Convergence Divergence) indicator offers a powerful blend of trend-following and momentum-based strategies.   Open Account: http://pocketoptioncapital.com  Donchian Channels are formed by plotting the highest high and the lowest low over a specific period—typically 20 bars—creating a visual envelope that encapsulates price movement. Traders often interpret a breakout above the upper band as a bullish signal, while a drop below the lower band suggests bearish momentum. This breakout system helps identify trending markets and avoids getting trapped in sideways or choppy conditions.  The MACD indicator adds another layer of confirmation by revealing the strength and direction of momentum. It consists of a MACD line, signal line, and a histogram that illustrates the distance between the two. When the MACD line crosses above the signal line, it signals bullish momentum; conversely, a cross below indicates potential bearish reversal. When combined with Donchian Channel breakouts, MACD can serve as a filter—confirming whether a breakout is supported by underlying momentum or if it might be a false move.  For example, a trader might only take a long position if the price breaks above the upper Donchian Channel and the MACD line crosses above the signal line. This dual-confirmation approach minimizes risk and enhances trade reliability. Similarly, short setups can be filtered using a downside breakout on the channel and a bearish MACD crossover. This strategy is especially effective in trending markets, where the goal is to ride momentum after a confirmed breakout, and the MACD ensures the move has strength behind it.  Money Management: It is important to follow up with this strict rule of investment: If you have $100 in your account, each open position should be $5 tops If you have $200 in your account, each open position should be $10 tops If you have $500 in your account, each open position should be $25 tops If you have $1,000 in your account, each open position should be $50 tops If you have $2,000 in your account, each open position should be $100 tops If you have $5,000 in your account, each open position should be $250 tops  We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.  Open Account: http://pocketoptioncapital.com  Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.

Transcript

00:00This guy turned $10,000 into $1.1 million in 12 months day trading and he goes by the name of

00:08Larry Williams. In this video, I'll be showing you how Larry Williams managed to turn $10,000

00:13into $1.1 million. I'll be showing you how to set his strategy up step by step and I'll be

00:20showing you how to trade his strategy effectively so that you too can become a successful binary

00:25options trader. But before we jump straight into the video, make sure you smash a like on the video

00:30and subscribe to the channel if you are new. I think we just hit 100 subscribers so thank you

00:35very much for that indeed. Other than that, let's jump straight into the video. So the first thing

00:40you're going to want to do is head over to the indicators icon right over here. In the third

00:45column to the right, fourth from top, you're going to see the Dantian channels and you're going to

00:48want to add this indicator to your chart. Now once you've added the Dantian channels indicator to your

00:53chart, it should look something like this. For those of you that do not know what the Dantian

00:58channels indicator is, I'm briefly going to explain to you what it's all about. I mean,

01:02it's pretty self-explanatory. As you can see, there's an obvious channel. Now there's far more

01:07to it. As you can see, there's an upper band, a median and a lower band. The upper band acts as a

01:12resistance level, giving us a better idea of the most recent high. The median tells us the overall

01:17trend of the market, almost acting as a moving average. Then you've got the lower band,

01:22which pretty much acts as a support level, giving us a better idea of the most recent low.

01:28So now that you know what the Dantian channel is and the basics of it, we're going to go ahead and

01:32change the settings of the indicator. So in order to change the settings of the indicator, you're

01:37going to want to click on the pencil between the eye and the cross. Here, all we're going to change is

01:42the period from 20 to 25. Once you've done that, you can click on save. Now the Dantian channel

01:48doesn't look much different than it did before, but trust me, changing the period from 20 to 25

01:54makes a big difference. I mean, this indicator is pretty great on its own, but we're not done yet.

02:00We're going to be adding one more indicator to our chart. So in order to complete the setup of

02:05Larry Williams strategy, we're going to be adding one more indicator to our chart. Now what you're going

02:09to want to do is head over to the indicators icon once again. In the first column, fifth from bottom,

02:14you'll find the MACD indicator and you're going to want to add it to your chart. So the reason why

02:20we added the MACD indicator to our chart is so that it provides us with more confluence when it comes

02:25to the overall trend of the market. But we're going to have to change a few things in order for the

02:30MACD to work for this strategy. Now, what you're going to want to do is click on the pencil next to

02:35the X on the MACD indicator. Here, you're going to want to go to styles, deselect the histogram and

02:40the signal line. All that you're going to be left with is the MACD line. Now you can head back

02:44to inputs. We're going to leave the values as is. And once you've done all that, you can click on

02:49save. Okay. So now that we have the indicator set up, I'm going to go ahead and show you guys

02:54how to trade Larry Williams strategy effectively. So just to let you guys know, we're on the one

02:59minute timeframe, opening three minute positions. This strategy works for any timeframe, but works

03:04best on the one minute chart. Before I get into a couple of examples, I'm just going to show you

03:09guys the basics of this strategy. Essentially, you want the price to break above the upper band for a

03:14buy position, or you want the price to break below the lower band for a sell position. Now, as you

03:19guys know, we're not going to be using the Donchian channels on its own. We also want some confluence

03:24with the MACD indicator. So for a sell position, essentially the first confirmation comes in when

03:30you see the price break below the lower band of the Donchian channel. The second confirmation comes

03:35in with the MACD. We want the MACD line to close below the zero line, which is right over here. If you guys

03:40cannot see it, I'll highlight it for you, which is in between these two lines over here. We want the

03:45MACD line to close below the zero line as our second confirmation. So in other words, if we see the price

03:51break below the lower band of the Donchian channel, we also need to see that the MACD line closes below

03:57the zero line. Once we get that correlation, once we've got those two confirmations, we know it's time

04:02to sell. Now, the same goes for buy positions. It's just the other way around. The first confirmation

04:08comes in when the price breaks above the upper band of the Donchian channel. The second confirmation

04:13comes in when the MACD line closes above the zero line. Once we've got that confirmation between the

04:18two indicators, once we've got those two confirmations, we know it's time to buy. So now

04:24that you understand the basics of this strategy, I'm going to get into a couple of examples.

04:28So here we have a good example of a potential buying opportunity. As you can see, the price breaks

04:34above the upper band of the Donchian channel, and we can also see the MACD line cross the zero line.

04:39And obviously, we're on the one minute time frame opening three minute positions.

04:44So once we see that MACD line cross the zero line, which was on this candle over here,

04:49once this candle closed, we would have opened a position over here. That's one, two, three minutes.

04:55The trade would have closed over here. That would have been a beautiful winning trade.

04:59Now, here we have an example of a trade that we would not take. As you can see,

05:03we've got the first confirmation here. The price breaks below the lower band of the Donchian channel,

05:08but there's no confirmation from the MACD indicator. So therefore, we would not take this position.

05:14I'll go ahead and give you guys one more example. Here we have a great selling opportunity. As you can

05:19see, the price breaks below the lower band of the Donchian channel, and we can also see the MACD

05:24line close below the zero line. So we'd be opening a sell position on the close of this candle over here.

05:30So that would be one, two, three minutes. The position would have closed over here.

05:34And again, that's another beautiful trade. So that's pretty much the strategy itself.

05:39Real simple to set up, real simple to follow. But this strategy is absolutely insane.

05:45I'm going to go ahead and get into a couple of live positions to show you exactly what I'm

05:49talking about, to show you how damn good this strategy actually is. So sit back, relax, and enjoy.

05:56Bye.

06:05Bye.

06:16Bye.

06:22Bye.

06:24Bye.

06:25Bye.

08:40consistent with this strategy, you too can make a crap ton of money. And that's what Forex is all

08:47about. Making money. Otherwise, I hope you guys enjoyed the video. I hope you found it informative.

08:53I hope you learned something new. And if you did, go ahead and smash a like on the video

08:57and subscribe to the channel if you are new. And I'll see you in the next one.

Category

Transcript

Recommended