The Anchored VWAP Channel indicator for Metatrader 4 provides solid trading signals and is based on the volume-weighted average price.
The indicator consists of 3 colored channel lines (orange, dotted gray, blue) and appears in the main chart window.
The overall trend is considered upwards when the channel is sloping up.
Likewise, the overall trend is considered downwards when the channel is sloping down.
Buy & sell trading signals:
- A new buy signal occurs when the candlestick closes above the orange VWAP channel line and the channel is sloping upwards.
- A new sell signal occurs when the candlestick closes below the blue VWAP channel line and the channel is sloping downwards.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
The picture below shows the Anchored VWAP Channel Forex indicator in action on the EUR/USD H1 trading chart.
Always trade the Anchored VWAP Channel in the direction of the overall trend.
Place a stop loss above or below the most recent swing high or low price.
The indicator can be used as a standalone trading tool for both trade entry and exit.
This technical indicator can work together with any existing trading strategy or system for additional trend confirmation.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Price calculation method) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Copy and paste the Anchored VWAP Channel.ex4 indicator into the MQL4 indicators folder.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)