What is Channel Indicator?

Channel indicator is a technical analysis indicator showing a central moving average line plus channel lines at a distance above and below. Channel indicator showing a central moving average line plus channel lines at a distance above and below.Thousands of forex traders are using this special indicator in their metatrader terminal. By using Channel indicator you will be able to unleash your trading expertise in a significant level. Surely this will add an extra ease for your successful trading. Our users can get brief description from our website.

Channel Indicator

Channel indicator for metatrader

Channel indicator is used to identify price breakouts above or below recent price history. The indicator plots recent high and low price boundaries. Any time the current price breaks above or below that boundary a trading opportunity may exist.

The Donchian channel is a useful indicator for seeing the volatility of a market price. If a price is stable the Donchian channel will be relatively narrow. If the price fluctuates a lot the Donchian channel will be wider.

In Keltner’s description the centre line is a 10-day simple moving average of typical price, where typical price each day is the average of high, low and close,

typical\ price = {high + low + close \over 3}
The lines above and below are drawn a distance from that centre line, a distance which is the simple moving average of the past 10 days’ trading ranges (i.e. range high to low on each day).

The trading strategy is to regard a close above the upper line as a strong bullish signal, or a close below the lower line as strong bearish sentiment, and buy or sell with the trend accordingly, but perhaps with other indicators to confirm.

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