The Auto channel indicator for MT4 is the best Metatrader indicator which draws an equidistant channel automatically. Moreover, the indicator displays the slope of the channel to identify the BULLISH and BEARISH conditions.

The outer channel lines act as a support and resistance and provide the best entry points. The channel size comes in handy in any technical trading strategy. The indicator provides a very good risk-reward ratio as the stop loss is often small compared to the take profit.

Drawing a proper equidistant channel automatically is very useful for new forex traders. As new forex traders often find it difficult to plot them. Additionally, the support and resistance provided by the Auto channel indicator for MT4 help the new forex traders. On the other hand, advanced forex traders can incorporate the ascending and descending channels in any technical trading strategy.

Advanced technical traders can use the indicator to trade both trend and counter-trend trading strategies. Additionally, forex traders can download the indicator for free.

Auto Channel Indicator For MT4 Trading Signals

The above USDCAD M30 chart shows the Auto Channel Indicator For MT4 in action. The indicator plots the outer channel as GREEN lines while plotting the midline as a dotted GREEN line. Additionally, the indicator plots a RED circle when the price touches the outer channel lines. Moreover, the size and slope of the channel are displayed as a comment on the chart.

As an ascending channel indicates a BULLISH market, forex traders can place BUY positions at the lower channel. Since the lower channel acts as support it signals as the best entry point. Forex traders can place a stop loss below the previous swing low with profit targets at the next resistance in this technical trading strategy.

Oppositely, forex traders can trade SELL positions at the top of a descending channel as it is a BEARISH trend. The top while acting as s resistance provides the best entry point. Forex traders can place Stop-loss above the previous high with a take profit target at the next support level, the opposite end of the Auto channel indicator for MT4.

All entry points should be accompanied by a reversal candle for confirmation of price action. So, a bullish reversal candle is necessary for a BUY signal, while a bearish reversal candle is warranted for a SELL signal.

The indicator works on all intraday time frames and the daily, weekly, and monthly charts. However, it is important to use price action to confirm the BUY and SELL signals.

Conclusion

The Auto Channel Indicator for MT4 is the best tool that should have a permanent place in the arsenal of any technical forex trader. The indicator draws the channels automatically which not only indicate the BEARISH and BULLISH market condition. But also provide support and resistance automatically which double as profit targets in this technical trading strategy. Moreover, the indicator is free to download and easy to install.