Forex Channel MT4 Indicator – Free MT4 Indicator

If you like channel trading, then you will absolutely love the Forex Channel MT4 Indicator. We all know that the big money is Forex Channel MT4 Indicator. We all know that the big money is made riding the trend and in order to make money in trading, we need a trend. Since the markets are fractal in nature every time frame presents its own trend and usually when a trend emerges no matter of the degree of the trend it starts moving inside a channel. For some inexperienced traders it may be harder to spot the trend, however, one can overcome these difficulties by using the Forex Channel MT4 indicator.

When we have an upward trend we can draw a support line connecting the lower low and lower highs together and this will represent a diagonal which is kind of guiding the price and the price keeps of bouncing off its channel boundaries in its journey to the top. Going forward, in order to identify the channel inside which the market price will be traded, we’re going to take this diagonal, copy it and put it above the price which it means it will have the same angle as the first one. In essence, this will be the process to identify a possible bullish or bearish channel which needs to be constantly readjusted as the market breaks above/below the channel.

With the Forex Channel MT4 indicator you can take away this burden of constantly being forced to manually readjust the channel boundaries and identify the correct structure of the channel as the indicator will do this whole process automatically.

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Forex Channel MT4 Indicator Settings

The Forex Channel MT4 indicator, has two main variables that can be changed. First, we have the “Allbars” variable, which indicates how far back you want the indicator to go and start building and find if there is any channel within that time frame. As a default it is set to 240 bars which means that depending on the chosen time frame it will go back in time 240 bars and start from there to find if there is any channel price structure.

The basic premise of why trading channels can be a lucrative trading strategy is because we’re anticipating the price to bounce between the channel limits and continue in the direction of the channel. But, since this is a dynamic indicator that will continue to adjust to the changes in price the indicator will also show you when the channel was broken and had to readjust.

Forex Channel MT4 Indicator – Trade Example

Forex Channel MT4 Indicator – Trading Rules

Before entering any trades we have to wait for at least two retests of the channel boundaries and in order to maximize the rate of success we’re going to only enter once we break below the middle line of the channel with a stop above/below previous high/low and targeting the opposite side of the channel.

Forex Channel MT4 Indicator – Buy Signal Example

In the above chart, we have a representation of a short trade setup that could have earned us more than +350 pips in profit. By waiting for the middle line of the channel to break, we’re adding a little bit of extra confirmation to our trades and it can be seen how the downside momentum is accelerating once we break below which is another sign that we have to look after when entering a trade.

Time Frames

Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

Forex Channel Strategy Video

Forex Channel MT4 Indicator Video

Forex Channel MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

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