Placing Channels on XAUUSD Charts on the MT5 Platform
The third option on the insert menu on the MetaTrader 5 platform 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 MetaTrader 5 Platform
Channels which can be placed on the xauusd charts are shown on the channels button menu are:
- Gold Trading Fib Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different xauusd trading analysis and are drawn differently on the MT5 Gold charts.
Gold Trading Fibonacci Channels
Fibonacci Channels is a type of channel that is automatically drawn by this Fibo Channels button key, To draw these Fib channels, a trader selects 2 points where to draw the same way a gold trend line is drawn on the MT5 Platform, once this gold trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first gold trend line and then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the xauusd price reaches these points.
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 shown below:
Placing Fibonacci Channels on MT5 Gold 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 and the center point which is the mean for the xauusd price.
These upper and lower channels are used to open xauusd trades and close xauusd trades and also determine the levels to take profits or set stops for xauusd trades. Linear regression channels are shown below:
Placing Linear Regression Lines in MetaTrader 5
Equidistant Channels
The equidistant channels is the most oftenly used channel in gold trading. On MT5 platform, a trader can draw an upward channel or downward channel, the xauusd trading example illustrated and explained below shows an upward Gold Trading channel, once the lower channel is drawn ( gold 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 xauusd price as shown below - the next time xauusd price touches this line the buy gold trade will then be closed and profit taken. As shown below this was the best xauusd price to take profit when price in the upward trend touched the upper channel.
Placing Equidistant Channels in MetaTrader 5
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 displayed and shown below.
Placing Standard Deviations Channels in MetaTrader 5
