Placing Channels on Charts on the MetaTrader 4 Trading Software

The third option on the insert menu on the MetaTrader 4 platform software is the channels button. Channels button key is used to insert various types of channels on Bitcoin charts in MT4 platform software. The channels button is illustrated below.

Menu Button for Placing Various Channel Tools on the MT4 Trading Software

The channels that can be set on the crypto charts are depicted on the channels button menu are:

Bitcoin Fibo Channels
Linear Regression Channels
Equidistant Channels
Standard Deviation Channels

All these channels have different trading analysis and are drawn differently on the MT4 Bitcoin charts.

Bitcoin Fibo Channels

Fibo Channels is a type of channel that is automatically/mechanically drawn by this Fibo Channels button, To draw these Fibonacci channels, one chooses two points where to draw the same way a bitcoin trend line is drawn on the MT4 platform software, once this bitcoin trend points are joined, the Fib channels drawing tool uses these points to draw the first bitcoin trendline & then automatically draws another 5 lines that form channels - these channels are used as profit booking levels to book profits once the bitcoin price reaches these points.

Fib areas used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most often used channels are first two channels like shown and illustrated below:

Placing Fib Channels on MetaTrader 4 BTCUSD Charts

Linear Regression Channels

The Linear regression technical indicator channels are self-adjusting channels, which adjusts as the channel is drawn from point 1 to 2, linear regression channels then form what is similar to a bitcoin price boundary, this bitcoin price boundary shows upper & lower bitcoin price boundary and the center point which is the mean for the bitcoin price.

These upper and lower channels are used to open positions and close trades and also determine the levels to take profit orders or set stop loss orders for trades. Linear regression channels are shown below:

Placing Linear Regression Lines in MT4 Platform Software

Equidistant Channels

The equidistant channels is the most oftenly used channel in bitcoin trading. On the MetaTrader 4 software, one can draw an upward channel or down ward channel, the example shown below shows an upward channel, once the lower channel is drawn ( bitcoin trend line), the top channel is automatically/mechanically drawn, one can then doubleclick the upper channel to adjust it so that it touches the highest high of bitcoin price like as shown below - the next time bitcoin price touches this line the buy bitcoin trade then will be closed and profit taken. As shown below this was the best bitcoin price to take profit when bitcoin price in the upward bitcoin trend touched the upper channel.

Placing Equidistant Channels on the MetaTrader 4

Standard Deviation Channels

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

Placing Standard Deviation Channels in MT4 Platform Software

Study More Guides & Courses:

Trade Bitcoin Trading

Placing Channels on Charts on the MetaTrader 4 Trading Software

Bitcoin Fibo Channels

Linear Regression Channels

Equidistant Channels

Standard Deviation Channels