The Price Channel Metatrader 5 forex indicator is a technical indicator that plots the price channel on the chart, with its upper and lower boundaries being determined via the maximum and minimum prices for a specified period.
Price action always involves the acceleration and deceleration of the market, which renders the drawing of straight lines of support and resistance levels quite difficult.
The indicator forms a dodger blue shaded region that shows upper and lower boundaries, while also depicting a blue median line.
The dodger blue shaded area offers price a channel with clear adjustable support and resistance levels.
The AUD/USD M30 chart below displays the Price Channel Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price opens and closes above the blue median line of the Price Channel Metatrader 5 forex indicator, while trading along the indicator’s upper dodger blue boundary.
Sell Signal: Go short when price opens and closes below the blue median line of Price Channel Metatrader 5 forex indicator, while trading along the indicator’s lower dodger blue boundary.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the blue median line of the Price Channel indicator.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price closes above the blue median line of the Price Channel indicator.
Tips: The Price Channel indicator performs quite well when the market is trending and traders should unplug it when the market is choppy.
Adding the Bollinger Bands indicator to this trade setup is obviously a big boost in aiding users fully ascertain market volatility, thereby knowing when it’s most efficient to launch trades.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | resistance/support
Copy and paste the price_channel.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)