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