Placing Channels on Trading Charts on the Meta Trader 4 Platform

The third option on the insert menu on the MetaTrader 4 oil software is the channels button key. Channels button key 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 in MT4 Platform

Channels which can be placed on the crude charts are shown on the channels button key menu are:

1. Oil Fibonacci Channels
2. Linear Regression Channels
3. Equidistant Channels
4. Standard Deviation Channels

All these channels have different technical analysis & are drawn differently in MetaTrader 4 charts.

Oil Fibo Channels

Fibo 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 oil 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 crude price reaches these points.

Fib levels 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 and illustrated below:

Placing Fibonacci Channels in MT4 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 crude trading price boundary, this crude trading price boundary shows upper & lower crude trading price boundary & the center point which is the mean for the crude 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 illustrated below:

Placing Linear Regression Lines on MT4 Platform

Equidistant Channels

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

Placing Equidistant Channels in MT4 Platform

Standard Deviation Channels

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

Placing Standard Deviation Channels on MT4 Platform