Placing Channels on Trading Charts on the Meta Trader 4 Trading Platform

The third option on the insert menu on the MT4 trading software is the channels button. The channels button is used to insert various types of channels on Trade charts on the Meta Trader 4 platform. The channels button is pictured below.

Menu Button For Placing Various Channel Tools on The MT4 Energies Trading Platform

The channels that can be placed on charts are shown on the channels button menu are:

1. Energies Trading Fib Channels
2. Linear Regression Channels
3. Equidistant Channels
4. Standard Deviation Channels

All these channels have different technical analysis & are drawn differently on the MT4 Energies charts.

Energies Trading Fibonacci Channels

Fibonacci Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a trader selects two points where to draw the same way a trend line is drawn on the MT4 platform, once this trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the price reaches these points.

Fib areas used to draw these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are the first two channels as shown & illustrated below:

Placing Fibonacci Channels on MT4 Energies Charts

Linear Regression Channels

Linear regression channels are self adjusting channels, which adjusts as channel is plotted from point 1 to point 2, linear regression channels then form what is similar to a price boundary, this price boundary shows upper and lower price boundary and the center point which is the mean for the price.

These upper and lower channels are used to open trades & close trades and also determine the levels to take profits or set stops for trades. Linear regression channels are shown below:

Placing Linear Regression Lines in MT4 Platform

Equidistant Channels

The equidistant channels is the most commonly used channel in energies trading. On MT4 platform, one can draw an up-ward channel or downwards channel, the example illustrated and explained below displays an upward Energies Trading channel, once the lower channel is plotted ( trend line), the top channel is automatically drawn, one can then double-click the upper channel to adjust it so that it touches the highest high of price as pictured below - the next time price touches this line the buy trade will then be closed & profit taken. As pictured below this was the best price to take profit when the price in the upward trend touched the upper channel.

Placing Equidistant Channels on MetaTrader 4 Platform

Standard Deviation Channels

Standard Deviation channel is similar to Linear Regression channel and it is also used to set the upper and lower boundaries within which price should move along within. The Standard Deviation channel is portrayed & shown below.

Placing Standard Deviation Channels on MetaTrader 4 Platform