Placing Channels on XAUUSD Charts on the MT5 Platform
The third option on the insert menu on the MT5 software is the channels button. The channels button is used to insert various types of channels on Gold Trading charts on the MT5 platform. The channels button is shown below.
Menu Button for Placing Various Channel Tools on the MT5 Platform
The channels that 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 MetaTrader 5 Gold charts.
Gold Trading Fibonacci Channels
Fibonacci Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a Gold trader selects two points where to draw the same way a gold trend line is drawn on the MetaTrader 5 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, that adjusts as the channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a xauusd price boundary, this xauusd price boundary shows upper and 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 on MT5
Equidistant Channels
The equidistant channels is the most commonly used channel in gold trading. On the MT5 platform, a gold 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 on MT5
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 xauusd price should move within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MT5
