Placing Channels on Energies Trading Charts in MT5 Platform
The third option on the insert menu on the MT5 energies trading software is the channels button. The channels button is used to insert various types of channels on Energies charts in MT5 platform. The channels button is shown below.
Menu Button For Placing Various Channel Tools on MT5 Platform
The channels that can be placed on energies charts are shown on the channels button menu are:
- Energies Trading Fib Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis & are drawn differently on the MT5 Energies charts.
Energies Trading Fib Channels
Fibonacci Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a trader selects two points where to draw the same way a energies trend line is drawn on the MT5 Platform, once this energies trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first energies trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the energies price reaches these points.
Fib areas used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are first two channels as shown & illustrated below:
Placing Fibonacci Channels on MT5 Energies Trading Charts
Linear Regression Channels
Linear regression channels are self-adjusting channels, that adjusts as channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a energies price boundary, this energies price boundary shows upper and lower energies price boundary and the center point which is the mean for the energies price.
These upper and lower channels are used to open energies trades & close energies trades and also determine the levels to take profits or set stops for energies trades. Linear regression channels are shown below:
Placing Linear Regression Lines on MT5 Software
Equidistant Channels
The equidistant channels is the most commonly used channel in energies trading. On MT5 platform, a trader can draw an upward channel or downward channel, the energies example illustrated and explained below shows an upward Energies channel, once the lower channel is drawn ( energies 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 energies price as shown below - the next time energies price touches this line the buy energies trade will then be closed and profit taken. As shown below this was the best energies price to take profit when price in the upward trend touched the upper channel.
Placing Equidistant Channels on MT5 Software
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 energy price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MT5 Software
