Placing Channels on Cryptocurrency Charts on the MetaTrader 4 Platform

The third option on the insert menu on the MT4 software is the channels button. The channels button is used to insert various types of channels on Bitcoin charts on the MetaTrader 4 platform. The channels button is shown below.

Menu Button for Placing Various Channel Tools on the MetaTrader 4 Platform

The channels that can be placed on the crypto charts are shown on the channels button menu are:

1. Fibonacci Channels
2. Linear Regression Channels
3. Equidistant Channels
4. Standard Deviation Channels

All these channels have different technical analysis and are drawn differently on the MT4 Bitcoin charts.

Fibonacci Channels

Fibonacci Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a Bitcoin trader selects two points where to draw the same way a bitcoin trend line is drawn on the MT4 platform, once this bitcoin trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first bitcoin trend line and then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the btcusd price reaches these points.

Fibonacci levels used to draw these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are the first two channels as shown below:

Placing Fibonacci Channels on MetaTrader 4 Bitcoin Charts

Linear Regression Channels

Linear regression channels are self adjusting channels, that adjusts as the channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a bitcoin price boundary, this btcusd price boundary shows upper and lower btcusd price boundary and the center point which is the mean for the bitcoin price.

These upper and lower channels are used to open trades and close trades and also determine the levels to take profits or set stops for cryptocurrency trades. Linear regression channels are shown below:

Placing Linear Regression Lines on MetaTrader 4

Equidistant Channels

The equidistant channels is the most commonly used channel in bitcoin trading. On the MetaTrader 4 platform, a bitcoin trader can draw an upward channel or downward channel, the cryptocurrency trading example illustrated below shows an upward Cryptocurrency channel, once the lower channel is drawn ( bitcoin trend line), the top channel is automatically drawn, a Bitcoin trader can then double click the upper channel to adjust it so that it touches the highest high of btcusd price as shown below - the next time btcusd price touches this line the buy bitcoin trade will then be closed and profit taken. As shown below this was the best btcusd price to take profit when btcusd price in the upward bitcoin trend touched the upper channel.

Placing Equidistant Channels on MetaTrader 4

Standard Deviation Channels

Standard Deviation channel is similar to Linear Regression channel and it is also used to set the upper and lower boundaries within which btcusd price should move within. The Standard Deviation channel is shown below.

Placing Standard Deviation Channels on MetaTrader 4