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Placing Channels on Stock Charts on the MetaTrader 4 Software

The third option on the insert menu on the MetaTrader 4 software is the channels button key. Channels button is used to insert various types of channels on Stocks Trading charts on MT4 software. The channels button is pictured below.

Placing Channels on Stock Charts on the MT4 Software - How to Analyze MT4 Chart Tutorial PDF

Menu Button For Placing Various Channel Tools on The MT4 Platform

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

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

All these channels have different analysis & are drawn differently on the MT4 charts.

Stock Fib Channels

Fibonacci 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 trend line is drawn on the MT4 platform, once this trend points are joined, the Fib channels drawing tool uses these points to draw the first trendline and then automatically draws another five lines which form channels - these channels are then used as profit taking levels to take profits once the price reaches these points.

Fib levels used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are first two channels as shown below:

Draw Fib Extension on MT4 Software - What is Fibo Extension Levels?

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 price boundary, this price boundary shows upper & lower price boundary & the center point which is the mean for the price.

These upper and lower channels are used to open trades and close trades and also determine the levels to take profits or set stops for stock trades. Linear regression channels are symbolized below:

Stocks Linear Regression Technical Indicator Free Download

Placing Linear Regression Lines in MetaTrader 4

Online Stocks Broker

Equidistant Channels

The equidistant channels is the most commonly used channel in stock trading. On MT4 platform, a trader can draw an upwards channel or downward channel, the example illustrated and explained below portrays an upward Stocks Trading channel, once the lower channel is plotted ( trend line), the top channel is automatically plotted, a trader can then double-click the upper channel to adjust it so that it touches the highest high of price as pictured below - the next time price touches this line the buy trade will then be closed & profit taken. As pictured below this was the best price to take profit when the price in the upwards trend touched the upper channel.

Equidistant Channels Placed on Charts in The MTStock Platform

Placing Equidistant Channels in MetaTrader 4

Standard Deviation Channels

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

Best Stocks Indicator Combination Standard Deviation Technical Indicator

Placing Standard Deviation Channels in MetaTrader 4