Placing Channels on XAUUSD Charts on the MT4 Platform
The third option on the insert menu on the MT4 software is the channels button. The channels button is used to insert various types of channels on Gold charts in MetaTrader 4 platform. The channels button is shown below.
Menu Button Key for Placing Various Channel Tools in MetaTrader 4 Platform
The channels that can be placed on the xauusd charts are shown on the channels button menu are:
- Gold Trading Fibonacci Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis & are drawn differently on the MT4 Gold charts.
Gold Trading Fibonacci Channels
Fibo Channels is a type of channel that's automatically drawn by this Fibo Channels button key, To draw these Fib channels, a trader selects 2 points where to draw the same way a gold trend line is drawn on the MetaTrader 4 platform, once this gold trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first gold trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the xauusd price reaches these points.
Fib levels used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are first two channels as shown below:
Placing Fibonacci Channels on MT4 Gold Charts
Linear Regression Channels
Linear regression channels are self adjusting channels, which adjusts as the channel is plotted from point 1 to point 2, linear regression channels then form what's similar to a xauusd trading price boundary, this xauusd trading price boundary shows upper and lower xauusd trading price boundary and the center point which is the mean for the xauusd trading 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 xauusd trades. Linear regression channels are illustrated below:
Placing Linear Regression Lines in MetaTrader 4
Equidistant Channels
The equidistant channels is the most oftenly used channel in gold trading. On MT4 platform, a trader can draw an upward channel or downward channel, the xauusd trading example illustrated and explained below shows an upward XAUUSD channel, once the lower channel is drawn ( gold trend line), the top channel is automatically drawn, a trader can then double click the upper channel to adjust it so that it touches the highest high of xauusd trading price as shown below - the next time xauusd trading price touches this line the buy gold trade will then be closed and profit taken. As shown below this was the best xauusd trading price to take profit when price in the upward trend touched the upper channel.
Placing Equidistant Channels in MetaTrader 4
Standard Deviation Channels
Standard Deviation channel is similar to Linear Regression channel and it is also used to set the upper & lower boundaries within which xauusd price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviations Channels in MetaTrader 4
