Trend Following Indicators, Free Forex Indicators (MT4)

Daily Channel Indicator

Daily Channel Indicator defines the variable market trends and also determines the market trend providing more accuracy in signals and less lagging issues.

Trading based on support and resistance is an ideal strategy but many traders struggle to define it properly. Besides, identifying the market trend correctly is yet another challenge for traders.

Daily Channel Indicator demonstrates the market status in a quite simple method so that everybody can benefit from it including the newbie traders. Moreover, this indicator can be applied to trade all kinds of forex currency pairs.

Daily Channel Indicator Overview

Download and install the Daily Channel Indicator on your Forex MT4 platform. Once you’re done, find your trading chart like the image below


Daily Channel Indicator Explanation

Daily Channel Indicator stresses more on recent price action data for calculating the dynamic support/resistance levels and plotting trendlines. In general concept, the lower band is the place to enter long and the upper band is the area from where you go short.


The middle line of the indicator plots the main trendline. Price holds above the line, which defines the market trend as bullish, and drops below the trendline when the market is in a bearish mode.

The channel gets wider means the current trend of the market is getting stronger. On the other hand, the channel squeezes narrower when the trend gets weaker and signals a possible trend reversal.

Daily Channel: Buy Conditions

  • Price is supported at the lower band area
  • A solid bullish candle forms near the oversold area
  • Buy triggers at the break of the respective bullish candle’s high
  • Set stop loss below the lower band of the channel
  • Exit long/take profit whenever price hits the upper band area

Also Read: Exness Broker Review

Daily Channel: Sell Conditions

  • Price is resisted from the upper band area
  • A solid bearish candle forms near the overbought area
  • Sell triggers at the break of the respective bearish candle’s low
  • Set stop loss above the upper band of the channel
  • Exit short/take profit whenever the price hits the lower band area

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.

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About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

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.
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