PChannel Indicator

PChannel Indicator

PChannel Pivot indicator best MT4 forex trading indicator. Channels provide BULLISH and BEARISH trend direction and BUY and SELL signals. Free to Download
The PChannel Indicator for MT4 is based on the highest high and lowest low of the previous number of bars of indicator input. A Price Channel is plotted by the indicator which represents the highest high and lowest low which changes dynamically.

The channel lines change accordingly if the values of the highest high and lowest low change. As a result, the channel levels provide the forex trader with BULLISH and BEARISH trend direction with BUY and SELL signals. Failure of channel breakout produces reversal trading signals.

For best results, this Metatrader indicator should be confirmed with price action. The indicator does not repaint as it is based only on price changes. New and advanced forex traders can incorporate this in any forex technical trading strategy with ease. Additionally, the indicator is free to download and easy to install.

PChannel Indicator For MT4 Trading Signals

The above EURUSD M30 chart displays the PChannel Indicator for MT4 in action. The Upper price channel is plotted in BLUE while the lower is plotted in RED.

A sustained break out of the upper price channel indicates a breakout of the channel and provides a BUY signal. Forex traders can place a stop loss at the lower channel with take profit levels at a good risk a reward ratio. Alternately, at the instance of the breakout of lower price channel warrants a SELL position. The best stop loss is at the upper channel for this technical trading strategy.

However, if the price is unable to break the channels any reversal signal is considered as a signal to place a trade in the opposite direction. In this case, the channel behaves as support and resistance lines. The best practice is to confirm the reversal trading signals by price action. Reversal points tend to be stronger at established support lines and resistance zones or trendlines with an increased trading volume.

The PChannel indicator for MT4 helps the forex trader to identify the market trend. A flat channel represents a ranging market, while the price movement below the lower channel represents a BEARISH market trend. Oppositely, the price movement above the upper channel indicates a BULLISH price trend.

This Metatrader indicator works well in all intraday charts and higher time frames like the daily, weekly, and monthly charts. Forex traders using a multi-time frame ( mtf ) trading strategy will find it very effective as it reflects the trend in higher time frames. It further enables the forex technical trader to find the best entry point in a lower timeframe.

Conclusion
The PChannel indicator for MT4 is a short form of the Price channel. The indicator does not use any other formula or calculation except the highest high and lowest low. As a result, it provides a simple and effective price-based trading strategy. Additionally, forex traders can download the indicator for free and install it with considerable ease.