Price Channel Indicator for MT4

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Price Channel Indicator for MT4

Introduction to the Price Channel Indicator

Trend direction can be objectively identified based on average price movements. This is why most indicators use averages as a means to identify the trend. Trends can also be identified based on price action. This is because price would typically create higher highs during an uptrend, and lower lows during a downtrend. The Price Channel Indicator has both elements, combining average prices and price action when identifying trend directions.

What is the Price Channel Indicator?

The Price Channel Indicator is a trend following technical indicator which plots a channel based on price action movements. It plots a channel composed of three lines. Traders can interpret trend direction and trend reversal based on how price interacts with these three lines.

Price Channel Indicator for MT4

How the Price Channel Indicator Works?

The Price Channel Indicator plots the channels based on the highs and lows of price action. It is preset to detect the highs and lows of price over the past 14 bars. It then plots the upper line of the channel based on the highest high over the past 14 bars, and the lower line of the channel based on the lowest low over the past 14 bars. The middle line is basically the median of the two lines. It is computed by adding the highest high and lowest low over the past 14 bars, then dividing it by two.

How to use the Price Channel Indicator for MT4

The Price Channel Indicator has one variable which can be modified. This is the number of bars it would base its computation on. This can be modified on the “Channel Period” variable within the indicator’s settings.

How the Price Channel Indicator Works

The Price Channel Indicator can be used as a trend direction indicator. This is because price action would typically stay on the upper half of the channel during an uptrend, and on the lower half of the channel during a downtrend.

It can also be used as a trend reversal signal based on the crossing of price action over the middle line of the channel. However, this should be in confluence with other reversal indications.

Buy Trade Setup

When to Enter?

Identify a bullish trade setup based on price action. Open a buy order as soon as price closes above the middle line of the Price Channel. Set the stop loss on the support below the entry candle.

When to Exit?

Close the trade as soon as price closes below the middle line of the Price Channel.

How to use the Price Channel Indicator for MT4 - Buy Trade

Sell Trade Setup

When to Enter?

Identify a bearish trade setup based on price action. Open a sell order as soon as price closes below the middle line of the Price Channel. Set the stop loss on the resistance above the entry candle.

When to Exit?

Close the trade as soon as price closes above the middle line of the Price Channel.

How to use the Price Channel Indicator for MT4 - Sell Trade

Conclusion

The Price Channel can be a very effective short-term trend following indicator. This is because the Price Channel indicator identifies trend direction based on price movements. However, when used as a basis for a trade setup, it should be used in confluence with other trade setups merely as a confirmation of a trend reversal.

MT4 Indicators – Download Instructions

Price Channel Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.

Price Channel Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies

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How to install Price Channel Indicator for MT4.mq4?

  • Download Price Channel Indicator for MT4.mq4
  • Copy Price Channel Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
  • Start or restart your Metatrader 4 Client
  • Select Chart and Timeframe where you want to test your MT4 indicators
  • Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
  • Right click on Price Channel Indicator for MT4.mq4
  • Attach to a chart
  • Modify settings or press ok
  • Indicator Price Channel Indicator for MT4.mq4 is available on your Chart

How to remove Price Channel Indicator for MT4.mq4 from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader 4 Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete

Price Channel Indicator for MT4 (Free Download)

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