Introduction to the Raff Channel Indicator
The Raff Channel Indicator draws a trend channel using the technique originally introduced by Gilbert Raff. The slope of the channel shows a trend direction and its boundaries are considered potential market entry points.
The Raff Channel Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
Closer look on the Raff Channel Indicator
The upper and lower trendlines show the maximum distance the Close Line had moved away from the axis line (middle red line). Thus, the upper and lower lines can be considered as resistance and support levels.
As a rule, most movements of the price occur within a channel. It only goes beyond the support or resistance lines only on some occasions. If the price remains outside the channel longer than usual or went far enough, it could mean a change in the trend is in the making.
Overall, the channel contains a fairly complete overview of the aggregate price movements, which allows predicting the upcoming price movement (reaction at blue and pink lines) with a high probability.
Buy Signal Example
In the example below, the slope of the channel is clearly upward. A trader should look for long trade opportunities near the pink trendline.
Sell Signal Example
In the example below, the slope of the channel is clearly downward. A trader should look for short trade opportunities near the blue trendline.
Depending on the settings, the Raff Channel indicator can be applied to implement various strategies for trading within a channel or trading channel boundaries. The gauge can be used standalone or in conjunction with other technical analysis tools.
It is possible to simultaneously place two instances of the indicator with different calculation intervals on one chart. In such a case, it is possible to improve the accuracy of market entries on a local trend with consideration of the global trend.
You can adjust the indicator’s settings by changing the inputs in the settings window:
How to set up the Raff Channel indicator in MetaTrader (MT4)?
Download the Raff Channel.rar archive at the bottom of this post, unpack it, then copy and paste the Raff Channel.ex4 or Raff Channel.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
Summary Of That Forex Indicator
The Raff Channel indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.
Download Free Forex MT4 Raff Channel Indicator
To download the Raff Channel Indicator for Metatrader 4 (MT4) for free just click the button below: