Placing Channels on Gold Charts on the MetaTrader 4 Platform
The third option on the insert menu on the MetaTrader 4 platform is the channels button key. The channels button is used to insert various types of channels on XAUUSD Trading charts in MetaTrader 4 platform. The channels button is shown below.
Menu Button for Placing Various Channel Tools on the MetaTrader 4 Platform
The channels that can be set on the gold charts are shown on the channels button key menu are:
- XAUUSD Trading Fib Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis & are drawn differently on the MT4 XAUUSD charts.
XAUUSD Trading Fib Channels
Fibo Channels is a type of channel that's automatically drawn by this Fibonacci Channels button, To draw these Fib channels, a trader selects two points where to draw the same way a xauusd trend line is drawn on the MT4 platform, once this xauusd trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first xauusd trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the gold price reaches these points.
Fibonacci areas 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 illustrated & shown below:
Placing Fibonacci Channels in MT4 XAUUSD Charts
Linear Regression Channels
Linear regression channels are self adjusting channels, which adjusts as the channel is plotted from point 1 to point 2, linear regression channels then form what is similar to a gold trading price boundary, this gold trading price boundary shows upper and lower gold trading price boundary & the center point which is the mean for the gold trading price.
These upper and lower channels are used to open trades & close trades and also determine the levels to take profits or set stops for gold trades. Linear regression channels are illustrated below:
Placing Linear Regression Lines on MetaTrader 4
Equidistant Channels
The equidistant channels is the most commonly used channel in xauusd trading. On the MetaTrader 4 platform, a trader can draw an upward channel or downward channel, the xauusd example shown below shows an upward XAUUSD Trading channel, once the lower channel is drawn ( xauusd trend line), the top channel is automatically drawn, a trader can then double click the upper channel to adjust it so that it touches the highest high of gold trading price as shown below - the next time gold trading price touches this line the buy xauusd trade will then be closed and profit taken. As shown below this was the best gold trading price to take profit when price in the upward trend touched the upper channel.
Placing Equidistant Channels on MetaTrader 4
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 gold price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MetaTrader 4
