The Auto Trend Channels Buy/Sell indicator for Metatrader 5 is a powerful tool that accurately plots the best trend channels, serving as an efficient means for trade entry signals and profit targets.
In the price chart, it is visually represented by two red colored outlines and a red dashed middle line.
This indicator is particularly advantageous for scalpers and day traders as it offers numerous trade setups daily.
Here’s how it works:
- An upward sloping auto trend channel indicates a bullish market trend, signaling potential buying opportunities.
- A downward sloping auto trend channel suggests a bearish market trend, indicating potential selling opportunities.
The indicator provides the user with various customizable inputs and parameters, including minimum channel bars, color scheme, and drawing channels.
Before using this technical indicator in live currency trading, it is recommended to practice and gain familiarity with it on a demo account.
Download Indicator
AutoTrendChannels.mq5 Indicator (MT5)
Trading Chart Example
The following chart shows how the Auto Trend Channels Buy/Sell indicator looks when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Auto Trend Channels Buy/Sell Indicator?
Find a simple trading example below:
Buy Signal
- Buy condition: the channel must show a positive slope.
- Open a buy order when the candle touches the lower channel line.
- Exit the buy trade when the candle touches the upper channel line.
- Alternatively, use your preferred take-profit method to close the buy trade.
Sell Signal
- Sell condition: the channel must show a negative slope.
- Open a sell order when the candle touches the upper channel line (see chart example above).
- Exit the sell trade when the candle touches the lower channel line.
- Alternatively, use your preferred take-profit method to close the sell trade.
Download Now
AutoTrendChannels.mq5 Indicator (MT5)
Channel Trend MT5 Trading Strategy Using Auto Trend Channels + Buy Sell Trend Value
This strategy combines the dynamic support/resistance levels provided by the Auto Trend Channels Buy/Sell Indicator with the precise entry signals from the Buy Sell Trend Value Indicator.
It helps traders identify high-probability entries within trending channels.
Strategy Overview
The Auto Trend Channels indicator draws automatic trendlines and channels that highlight key price zones, while the Buy Sell Trend Value Indicator gives clear buy or sell signals based on trend strength and direction.
Buy Trade Setup
- Confirm that the price is trading near or bouncing off the lower boundary of an upward Auto Trend Channel.
- Look for a buy signal from the Buy Sell Trend Value Indicator (e.g., a green arrow or positive value).
- Wait for bullish price action confirmation, such as a strong close within or above the channel.
- Enter a buy position with a stop-loss placed slightly below the lower channel line or recent swing low.
- Target the upper channel boundary or use trailing stops as the price moves upward.
Sell Trade Setup
- Identify price approaching or testing the upper boundary of a downward Auto Trend Channel.
- Confirm a sell signal from the Buy Sell Trend Value Indicator (e.g., a red arrow or negative value).
- Look for bearish price action confirmation like a candle close below the channel or resistance.
- Open a sell trade with a stop-loss above the upper channel line or recent swing high.
- Set profit targets near the lower channel boundary or trail stops to lock in gains.
Additional Tips
- Use on timeframes from 15 minutes to 1 hour for a good balance of signal frequency and trend clarity.
- Combine with volume or momentum confirmation to improve trade quality.
- Watch for channel breakouts, which can signal trend reversals or accelerations.
This method leverages the automatic channel detection of the Auto Trend Channels Buy/Sell Indicator, together with the clear buy and sell signals from the Buy Sell Trend Value Indicator, to capture reliable entries within trending markets.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the AutoTrendChannels.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
