Placing Channels on Charts on the MT5 Software
The third option on insert menu on MT5 software is the channels button. Channels button is used to insert various types of channels on Gold Trading charts in MetaTrader 5 software. Channels button is illustrated below.
Menu Button Key for Placing Various Channel Tools in MT5 Software
Channels which can be placed on the charts are pictured on the channels button menu are:
- Gold Fibo Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different xauusd analysis and are drawn differently on the MT5 charts.
Gold Fibo Channels
Fibonacci Channels is a type of channel that is automatically drawn by this Fib Channels button key, To draw these Fibo channels, a trader selects 2 points where to draw the same way a xauusd trend line is drawn on the MT5 Platform, once this trend levels are connected, the Fibo channels drawing tool uses these points to draw the first trendline & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to take profits once the price gets-to these levels.
Fibonacci levels 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 below:
Placing Fib Channels on MT5 Charts
Linear Regression Channels
Linear regression channels are self adjusting channels, which adjusts as channel is plotted from point 1 to point 2, linear regression channels then form what's similar to a xauusd price boundary, this xauusd price boundary shows upper & lower xauusd price boundary & the center point which is the mean for the price.
These upper and lower channels are used to open trades and close xauusd trades and also determine the levels to take profits or set stops for trades. Linear regression channels are pictured below:
Placing Linear Regression Lines in MetaTrader 5
Equidistant Channels
The equi-distant channels is the most oftenly used channel in gold trading. On MT5 platform, a trader can draw an upwards channel or downward channel, the example illustrated and explained below portrays an upward Gold Trading channel, once the lower channel is drawn ( trend line), the top channel is automatically plotted, a trader can then double-click the upper channel to adjust it so that it touches the highest high of price as cited below - the next time xauusd price touches this line the buy trade will then be closed & profit taken. As cited below this was the best xauusd price to take profit when the price in the up-ward trend touched the upper channel.
Placing Equidistant Channels on MT5
Standard Deviation Channels
Standard Deviations channel is similar to Linear Regression channel & it's also used to set the upper & lower boundaries within which xauusd price should move within. The Standard Deviation channel is highlighted & illustrated below.
Placing Standard Deviations Channels in MetaTrader 5
