BP Channel Indicator

BP Channel Indicator

BP Channel Indicator For MT4 is a trend-following indicator providing buy and sell forex trading signals using the Stochastic indicator

The BP channel indicator for MT4 provides forex trading signals using the %k values of Stochastic indicator. Additionally, this trend following indicator creates a channel around the indicator line. The bullish and bearish trading signals are based on the crossover of the two indicator lines.

The indicator is quite easy to interpret and is suitable for new and advanced forex traders. Moreover, it works on all chart time frames and is suitable for trend following intraday and long term traders. Traders can adjust the indicator input settings to derive the required frequency of trading signals. Indeed, a higher value produces fewer long term trading signals.

BP Channel Indicator For MT4 Trading Signals

The indicator plots a blue line and a red line which produces trading signals. However, the upper and lower channel band in grey provides better entry points and acts as support and resistance.

Traders can use the crossover trading strategy to trade using this indicator. If the blue line crosses above the red line it indicates a bullish signal. So traders can place a buy trade with a stop loss below the lower channel. Traders can book profits at the upper band or hold positions ride the trend wave and exit at opposite trading signal.

Similarly, in a bearish market condition the blue line crosses below the red line. At this point, traders can open a sell position. The indicator provides best trading results during trending markets. However, during ranging markets buying and selling within the channel produces good results.

Conclusion
The BP channel indicator for MT4 using a combination of the Stochastic %k values and a channel provides stable and profitable trend trading signals.