Placing Channels on XAGUSD Charts on the MT4 Software
The third option on the insert menu on the MT4 silver trading software is the channels button. Channels button key is used to insert various types of channels on Silver charts in MetaTrader 4 platform. Channels button is shown below.
Menu Button For Placing Various Channel Tools on The MT4 Silver Trading Platform
The channels that can be placed on xagusd trading charts are shown on the channels button key menu are:
- Silver Trading Fibonacci Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different technical analysis and are drawn differently in the MetaTrader 4 Silver charts.
Silver Trading Fibonacci 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 selects 2 points where to draw the same way a silver trend line is drawn on the MT4 platform, once this silver trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first silver trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the xagusd 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 xagusd trading price boundary, this xagusd trading price boundary shows upper & lower xagusd trading price boundary and the center point which is the mean for the xagusd trading 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 MetaTrader 4
Equidistant Channels
The equidistant channels is the most oftenly used channel in silver trading. On MT4 xagusd trading platform, a trader can draw an upward channel or downward channel, the xagusd trading example explained and shown below shows an upward Silver channel, once the lower channel is drawn ( silver 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 xagusd trading price as shown below - the next time xagusd trading price touches this line the buy silver trade will then be closed and profit taken. As shown below this was the best xagusd trading price to take profit when xagusd trading price in the upward silver 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 xagusd price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MetaTrader 4
