Placing Channels on Gold Charts in MT5 Platform
The third option on the insert menu on the MT5 software is the channels button. The channels button key is used to insert various types of channels on XAUUSD charts in MT5 platform. The channels button is shown below.
Menu Button for Placing Various Channel Tools on the MetaTrader 5 Platform
The channels that can be placed on gold charts are shown on the channels button menu are:
- Gold Trading Fibonacci Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis & are drawn differently on the MT5 XAUUSD charts.
Gold Trading Fibonacci Channels
Fibo Channels is a type of channel that's automatically drawn by this Fibo Channels button, To draw these Fibonacci channels, a trader selects 2 points where to draw the same way a xauusd trend line is drawn on the MT5 Platform, once this xauusd trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first xauusd trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the gold price reaches these points.
Fibo areas used to draw these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most oftenly used channels are the first two channels as illustrated and shown below:
Placing Fibonacci Channels on MT5 XAUUSD Charts
Linear Regression Channels
Linear regression channels are self-adjusting channels, that adjusts as channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a gold price boundary, this gold price boundary shows upper and lower gold price boundary & the center point which is the mean for the gold price.
These upper and lower channels are used to open gold trades & close gold trades and also determine the levels to take profits or set stops for gold trades. Linear regression channels are illustrated below:
Placing Linear Regression Lines on MetaTrader 5
Equidistant Channels
The equidistant channels is the most oftenly used channel in xauusd trading. On the MetaTrader 5 platform, a trader can draw an upward channel or downward channel, the xauusd example shown below shows an upward Gold channel, once the lower channel is drawn ( xauusd 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 gold price as shown below - the next time gold price touches this line the buy xauusd trade will then be closed and profit taken. As shown below this was the best gold price to take profit when price in the upward trend touched the upper channel.
Placing Equidistant Channels on MetaTrader 5
Standard Deviation Channels
Standard Deviation channel is similar to Linear Regression channel and it is also used to set the upper & lower boundaries within which gold price should move within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MetaTrader 5
