Auto Trend Channel Indicator
Platform: MT4 Type: Channel Last update: September 25, 2024The Auto Trend Channel Indicator for MT4 is an awesome tool that displays a set of trendlines defined by the highs and lows of a currency pair price action. These lines are plotted automatically on a chart and together make a price channel as the price is moving between two parallel trendlines. This is one of the most common and solid trading strategies.
Closer look on the Auto Trend Channel Indicator
Automatic plotting of channels using the indicator allows saving time and focusing on finding the best trade entry. The first thing you should notice is the angle of the channel whether it is pointing upward, downward, or sideways. Take a look at the simple picture explaining the issue.
The trendlines, which simultaneously play the role of channel boundaries, should be also considered as support and resistance levels when interacting with the price. This is how your chart will look like when you activate the Auto Trend Channel indicator in your MT4 platform.
Buy Signal
When a market is in a bullish state, the auto price channel points in an upward direction. In such a case, we’ll use the lower channel as support and target this area for triggering buy orders following the bullish market trend.
- The price rejects the lower band of the auto trend channel
- A bullish price reversal pattern is formed
- Set stop loss a few pips below the support level
- Take profit when the price toches the upper band of the channel
Sell Signal
When a market is in a bearish state, the auto price channel points in a downward direction. In such a case, we’ll use the upper channel as resistance and target this area for triggering sell orders following the bearish market trend.
- The price rejects the upper band of the auto trend channel
- A bearish price reversal pattern is formed
- Set stop loss a few pips above the resistance level
- Take profit when the price toches the lower band of the channel
Settings
You can adjust the indicator’s settings by changing the inputs in the settings window. The most important input is “hours” – this variable is used to set the time horizon for defining channel boundaries. By default, it is 24 hours, just a whole one day.
