The P Channel Trading forex indicator consists of a mid line and upper and lower channel line.
All together creates a trading channel that can be used for trading any currency pair.
- Price trending up: the P Channel indicator is pointing to the upside (look to buy)
- Price trending down: the P Channel indicator is pointing to the downside (look to sell)
Channel trading can be used for scalping, day trading and swing trading currencies.
The GBP/USD H1 chart below displays the P Channel Trading forex indicator in action.
Basic Trading Signals
Signals from the P Channel Trading forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a long trade position when the P Channel indicator is pointing up (bullish price action) and the price hits the mid line or lower channel line (buy on dips).
Sell Signal: Open a short trade position when the P Channel indicator is pointing down (bearish price action) and the price hits the mid line or upper channel line (sell on rallies).
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Range) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the pchannel.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)