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Placing Channels on Stock Indexes Charts on the MT5 Indices Trading Platform

The third option on the insert menu on the MT5 indices trading software is the channels button. The channels button is used to insert various types of channels on Indices Trading charts on the MT5 stock indexes trading platform. The channels button is shown below.

Placing Channels on Stock Indexes Charts on the MT5 Indices Trading Platform

Menu Button For Placing Various Channel Tools on The MT5 Indices Trading Platform


The channels that can be placed on the stock indexes trading charts are shown on the channels button menu are:


  1. Fibonacci Channels

  2. Linear Regression Channels

  3. Equidistant Channels

  4. Standard Deviation Channels

All these channels have different stock indexes trading technical analysis and are drawn differently on the MetaTrader 5 Indices charts.


Fibonacci Channels

Fibonacci Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a Indices trader selects two points where to draw the same way a indices trend line is drawn on the MetaTrader 5 Indices Trading Platform, once this indices trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first indices trend line and then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the stock indexes price reaches these points.


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

Placing Fibonacci Channels on Stock Indexes Charts in The MT5 Indices Trading Software Platform

Placing Fibonacci Channels on MT5 Indices Charts


Linear Regression Channels

Linear regression channels are self adjusting channels, that adjusts as the channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a indices price boundary, this stock indexes price boundary shows upper and lower stock indexes price boundary and the center point which is the mean for the indices price.


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

Linear Regression indices trend Lines Place on MT5 Stock Indexes Charts

Placing Linear Regression Lines on MT5


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Equidistant Channels

The equidistant channels is the most commonly used channel in indices trading. On the MT5 stock indexes trading platform, a indices trader can draw an upward channel or downward channel, the stock indexes trading example explained and illustrated below shows an upward Indices Trading channel, once the lower channel is drawn ( indices trend line), the top channel is automatically drawn, a Indices trader can then double click the upper channel to adjust it so that it touches the highest high of stock indexes price as shown below - the next time stock indexes price touches this line the buy indices trade will then be closed and profit taken. As shown below this was the best stock indexes price to take profit when stock indexes price in the upward indices trend touched the upper channel.

Equidistant Channels Placed on Stock Indexes Charts in The MetaTrader Indices Trading Platform

Placing Equidistant Channels on MT5


Standard Deviation Channels

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

Standard Deviation Channel Placed on Stock Indexes Chart on The MT5 Indices Trading Software

Placing Standard Deviation Channels on MT5

 

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