Download Now
Auto Trend Channel allows you to quickly and easily analyze trend movement in both the long- and short-term. This indicator can automatically plot channels to save you time and produce better results in trading.
The channel lines serve as channel boundaries but also act simultaneously as price levels. These channel lines are useful for trading pending orders. After installing the indicator, a price channel will be displayed on your terminal’s screen.
You have the option to change the visual settings if necessary. Also, the thickness of lines can be adjusted. It changes depending upon individual settings.
What is the Auto Trend Channel indicator?
Prices can change in the Trend Channel for different reasons. True and false breakdowns are different. True breakouts occur when the price moves within a channel for some time, and then breaks the resistance.
Transforming the resistance line to support is what confirms a true breakout. This is when the trader has to wait for a new price channel.
We can determine if the breakout was false or not by the formation of one or more candles after the channel is broken. If the price doesn’t return to the trend channel, it is a true breakout.
The trend channel is when the price moves beyond the resistance line during bullish trends or the support line during bearish. It is important to note that price channels’ boundaries are not always clear.
Most often, price movements show a breakout without confirmation. If this happens, the trader must use other confirmation signals.
Auto Trend Channel Indicator Strategy
Let’s take a look at trading strategies using the Auto Trend Channel indicator.
Auto Trend Channel buy set up
- Wait for a clear breakout from the channel on its upside.
- Wait for the bullish candle to appear after the breakout
- Place the profit taker near the horizontal resistance
- Place the stop loss a few points below the trend channel’s upper limit.
Auto Trend Channel sale
- Keep an eye out for a clear breakout on the channel to the downside.
- Wait until the bearish candle appears after the breakout
- Place the take profit at the horizontal support
- The stop-loss should be placed a few pips higher than the trend channel’s lower boundary.
Conclusion
Auto Trend Channel indicator makes it easier to create a channel on the chart. Automatic plotting of charts is possible. You can also create a trading strategy using the indicator. Before going live, however, you must test the strategy on historical data and a demo account.
Download Now
The post Auto Trend Channel Indicator first appeared on EzyForexTrading - Download Metatrader Indicators and Learn trading!.
from
https://ezyforextrading.com/auto-trend-channel-indicator/?utm_source=rss&utm_medium=rss&utm_campaign=auto-trend-channel-indicator
No comments:
Post a Comment