Leon Wilson explained the Wilson Relative Price Channel in the July 2006 issue of TASC.
The indicator uses the Relative Strength Index to draw trading zones on the chart.
Price percent change initially acted as the basis for channel drawing on the original version of the Wilson Relative Price Channel indicator.
With this indicator’s modification, the ATR now acts as the basis for channel drawing.
This gives the indicator the opportunity to work on any time frame (considering its adjustments to the chart’s timeframe via the ATR calculation).
The zones (pale green and linen) can still act as overbought and oversold zones as originally intended.
The EUR/JPY H4 chart below displays the Wilson Relative Price Channel Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price opens and closes within the pale green channel of the Wilson Relative Price Channel Metatrader 5 forex indicator (stay bullish while price trades within or above the channel).
Sell Signal: Go short when price opens and closes within the linen channel of the Wilson Relative Price Channel Metatrader 5 forex indicator (stay bearish while price trades within or below the channel).
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the pale green channel.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price closes above the linen channel.
Tips: The indicator can be used as a stand alone or mixed together with other technical indicator or analysis tools.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (RSI period, RSI price, Smoothing period for RSI and EMA, Overbought level %, Oversold level %, Upper neutral level %, Lower neutral level %, ATR period, ATR multiplicator), 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 Wilson Relative Price Channel – mod.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)