Placing Channels on XAGUSD Charts on the MT4 Software

The third option on the insert menu on the MT4 trading software is the channels button. Channels button key is used to insert various types of channels on charts in MetaTrader 4 software. Channels button is shown below.

Menu Button For Placing Various Channel Tools on The MT4 Silver Platform

The channels that can be placed on xagusd charts are shown on the channels button key menu are:

1. Silver Trading Fibonacci Channels
2. Linear Regression Channels
3. Equidistant Channels
4. Standard Deviation Channels

All these channels have different technical analysis and are drawn differently in the MetaTrader 4 Silver charts.

Silver Trading Fibo Channels

Fibo Channels is a type of channel that is automatically drawn by this Fibo Channels button key, To draw these Fibonacci channels, a trader chooses 2 points where to draw the same way a trend line is drawn on the MT4 platform, once this trend points are joined, the Fib channels drawing tool uses these points to draw the first trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the price reaches these points.

Fib 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 shown and illustrated below:

Placing Fibonacci Channels on MT4 Silver 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 is similar to a trading price boundary, this trading price boundary shows upper & lower trading price boundary and the center point which is the mean for the 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 xagusd trades. Linear regression channels are illustrated below:

Placing Linear Regression Lines on MT4

Equidistant Channels

The equidistant channels is the most oftenly used channel in silver trading. On MT4 xagusd trading platform, a trader can draw an upwards channel or downward channel, the trading example explained and shown below shows an upward Silver channel, once the lower channel is drawn ( trend line), the top channel is automatically drawn, a trader can then doubleclick the upper channel to adjust it so that it touches the highest high of trading price as exhibited below - the next time trading price touches this line the buy trade will then be closed and profit taken. As exhibited below this was the best xagusd trading price to take profit when xagusd trading price in the upward trend touched the upper channel.

Placing Equidistant Channels in MT4

Standard Deviation Channels

Standard Deviation channel is similar to Linear Regression channel & it is also used to set the upper & lower boundaries within which price should move along within. The Standard Deviation channel is highligthed and shown below.

Placing Standard Deviation Channels on MT4