On the last tip we saw how to use the ATR Forex indicator on Metatrader 4. Today, we will focus on learning how to use the Channel Standard Deviation on MT4.
The Channel Standard Deviation Forex Indicator is the way to measure the volatility based on statistic terms. When the Standard Deviation is changed, so does the width of the channel.
How to Add the Channel Standard Deviation on MT4
The parameters for this indicator are:
The Deviations value corresponds to the Standard Deviation value, which will mark the width of the channel
Two points must be taken, one for the start of the channel and one for the end.
In this 4H graph, we see the channel formed between August the 24th and September the 25th.
The channel has a deviation of 1.8. This value is adjusted in a way that the superior line of the channel acts as a resistance of the pair price and the lower line acts as a support for the pair price.
When this channel is broken upwards, we’ll look for LONG positions. When the channel’s broken downwards, we’ll look for SHORT positions.