Free Forex Indicators (MT4), Trend Following Indicators
Auto Trend Channel Indicator
By Arun Lama
Published On
The Auto Trend Channel Indicator is an automatic trend-following price channel indicator for MT4 platforms. This indicator only counts the recent highs and lows of the price for plotting the price channel. Therefore, it works best as a scalping tool, especially for forex, stocks, and crypto-assets.
As a trend channel indicator, it helps you in analyzing the market trend and finding potential levels for making trade entries. According to our review, this MT4 auto channel tool is equally helpful for both beginner and expert professionals.
After you install the Auto Trend Channel Indicator on your MT4 platform, you’ll find three straight lines on your chart plotting the trend channel. The direction of the auto channel indicates the direction of the current market trend.
The higher and lower levels of the auto trend channel also help traders in determining the stop-loss and take profit levels of their trade entries. Besides, this indicator works as a trend analysis booster for any trend-oriented trading strategies.
Auto Trend Channel Indicator Explained
The Auto Trend Channel Indicator doesn’t generate any trade signals. It only identifies the present trend conditions and shows possible levels to make trading decisions.
During a bullish trend condition, the auto price channel levels progress in an upward direction. In such a condition, we’ll use the lower channel as support and target this area for triggering buy orders following the bullish market trend.
For sell orders, make sure the trend is in a bearish condition. Generally, the channel heads downwards during a bearish trend situation. Once the trend is confirmed, wait until the price hits the higher auto trend channel and shows bearish reversal price-action patterns.
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
