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.
Auto Trend Channel Indicator Overview
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.
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Auto Trend Channel Indicator: Buy Conditions
- The price rejects move below the lower auto trend channel
- A bullish price reversal pattern is plotted at the channel support
- SL below the support level
- Take profit when the price intends to fall from the higher channel
Auto Trend Channel Indicator: Sell Conditions
- The price treats the higher auto trend channel as resistance
- Candlesticks plot bearish reversal pattern at the channel resistance
- SL above the resistance level
- Take profit when the price shows a bullish reversal pattern near the channel support