Placing Channels on Cryptocurrency Charts in MT5 Platform
The third option on the insert menu on the MT5 platform is the channels button key. Channels button key is used to insert various types of channels on Bitcoin Trading charts in MT5 platform. The channels button is shown below.
Menu Button for Placing Various Channel Tools on the MetaTrader 5 Platform
The channels that can be placed on crypto charts are shown on the channels button key menu are:
- BTCUSD Trading Fib Channels
- Linear Regression Channels
- Equidistant Channels
- Standard Deviation Channels
All these channels have different cryptocurrency trading technical analysis & are drawn differently on the MT5 Crypto charts.
BTCUSD Trading Fib Channels
Fibo Channels is a type of channel that is automatically drawn by this Fibonacci Channels button, To draw these Fibonacci channels, a trader selects two points where to draw the same way a bitcoin trend line is drawn on the MT5 Platform, once this bitcoin trend points are joined, the Fibonacci channels drawing tool uses these points to draw the first bitcoin trend line & then automatically draws another 5 lines that form channels - these channels are used as profit taking levels to book profits once the bitcoin price reaches these points.
Fib areas used to plot these channels are: 0.618, 1.000, 1.618, 2.618, 4.236: The most commonly used channels are first two channels as illustrated & shown below:
Placing Fibonacci Channels on MT5 Bitcoin Charts
Linear Regression Channels
Linear regression channels are self-adjusting channels, that adjusts as channel is drawn from point 1 to point 2, the linear regression channels then form what is similar to a bitcoin trading price boundary, this bitcoin trading price boundary shows upper & lower bitcoin trading price boundary & the center point which is the mean for the bitcoin trading price.
These upper and lower channels are used to open cryptocurrency trades & close cryptocurrency trades and also determine the levels to take profits or set stops for cryptocurrency trades. Linear regression channels are illustrated below:
Placing Linear Regression Lines on MetaTrader 5
Equidistant Channels
The equidistant channels is the most commonly used channel in bitcoin trading. On the MetaTrader 5 platform, a trader can draw an upward channel or downward channel, the cryptocurrency trading example illustrated below shows an upward Bitcoin Trading channel, once the lower channel is drawn ( bitcoin trend line), the top channel is automatically drawn, a trader can then double click the upper channel to adjust it so that it touches the highest high of bitcoin trading price as shown below - the next time bitcoin trading price touches this line the buy bitcoin trade will then be closed and profit taken. As shown below this was the best bitcoin trading price to take profit when bitcoin trading price in the upward bitcoin trend touched the upper channel.
Placing Equidistant Channels on MetaTrader 5
Standard Deviation Channels
Standard Deviation channel is similar to Linear Regression channel & it is also used to set the upper and lower boundaries within which bitcoin price should move along within. The Standard Deviation channel is displayed and shown below.
Placing Standard Deviation Channels on MetaTrader 5
