PChannel Indicator

PChannel Indicator

The PChannel Pivot indicator is the best forex trading indicator for MT5. The channels provide BULLISH and BEARISH trend direction as well as BUY and SELL signals.

The PChannel indicator for MT5 is based on the highest high and lowest low of the previous number of bars of the indicator’s input data. The price channel is plotted by an indicator that represents the highest high and the lowest low, which change dynamically.

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

For best results, this Metatrader indicator should be confirmed by price action. The indicator does not redraw as it is based only on price changes. New and advanced forex traders can easily incorporate this into any technical forex trading strategy. In addition, the indicator is free to download and easy to install.

PChannel Indicator For MT5 Trading Signals
The EURUSD H1 chart below shows the PChannel indicator for MT5 in action. The upper price channel is shown in GREEN, the middle channel in BLUE, and the lower channel in RED.

A sustained breakout of the upper price channel indicates a breakout of the channel and gives a BUY signal. Forex traders can place a stop loss in the lower channel with take profit levels at a good risk/reward ratio. Alternatively, a SELL is guaranteed if the lower price channel is broken. The best stop loss for this technical trading strategy is on the upper channel.

However, if the price fails to break through the channels, any reversal signal is considered as a signal to open a trade in the opposite direction. In this case, the channel behaves like support and resistance lines. The best practice is to confirm reversal trading signals with price action. Pivot points tend to be stronger at established support lines and resistance zones or trend lines with increased trading volume.

The PChannel indicator for MT5 helps the forex trader to determine the market trend. A flat channel represents a market range, while a price move below the lower channel represents a BEAR market trend. Conversely, a price movement above the upper channel indicates a BULLISH price trend.

This Metatrader indicator works well on all intraday charts and higher timeframes such as 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. Also, it allows the technical trader to find the best entry point on the lower time frame.

Conclusion
The PChannel indicator for MT5 is an abbreviated form of a price channel. The indicator does not use any other formulas or calculations other than the highest high and lowest low. As a result, it provides a simple and effective price-based trading strategy. In addition, forex traders can download the indicator for free and install it easily.