MA Channels Indicator

MA Channels Indicator

MA Channels Indicator For MT4 plots FIbo channels at 23.6, 38.2, 50 and 61.8 of 100 moving average to provide forex reversal buy and sell trading signals

The MA channels indicator for MT4 plots Fibo channels above and below the 100 period moving average line. The channels are placed at 23.5, 38.2, 50 and 61.8% of the 100 moving average line. Generally, a 100 moving average line is suitable for short term trading. Since, the indicator combines the moving average and Fibonacci numbers the indicator provides reliable forex trading signals.

The indicator is suitable for new and advanced forex traders and works well in all intraday, short and long-term price charts. Moreover, traders can use this indicator to formulate automated trading strategies.

MA Channels Indicator For MT4 Trading Signals

The indicator plots white lines at 23.5%, yellow at 38.2%, orange at 50% and red at 61.8%. These lines are placed above and below the 100 MA line and forms a channel. The trading strategy is based on the price reaching the extreme upper or lower channel level and retracing back from these levels. In fact, the trading strategy is similar to overbought and oversold trading strategy.

Once the price moves higher than the 61.8% level or the upper red line of the channel, traders should wait for the price to retrace back below the line. This indicates the reversal of price trend and signals the traders to enter a sell position. Traders should place a stop above the previous swing high and look to book profits at the opposite end of the channel.

Similarly, if the price moves below the 61.8% level or the lower red line traders can enter a buy position.

Conclusion
In summary, the MA channels indicator for MT4 is a very useful for forex traders using channel based trading strategies.