Today I found a nice tool in Ensign which nicly complements my Fibonacci target lines. You might have noticed the additional lines on my CAD charts posted this morning. They are called Schiff lines (a variation of the Andrews Pitchfork tool) and work like a charm once an instrument you look at is trending in a channel.
The lines I used on CAD/USD this morning go back to a triangle present on October 23rd
And this channel is still valid. Meaning the first rule I now have on any tool I use on my charts is fullfilled:
I must be able to place the tool prior to the start of my trading day and it should from then on guide my trading by giving me clear Support and resistance zones
The Schiff lines (Andrews Pitchfork) are setup as follows in Ensign
To apply it to the chart, you look for a highly visible triangle. In an ascending channel, you need a Low, a High and a higher Low, which gives you the angle of the Channel as seen on the chart above. In a downtrend you have a High. a Low and a lower High.
Here is the setting of my Fib-tool as well, which i use to calculate Targets to the up- and downside (usually from yesterdays trading)