The Forex Volatility Channel indicator for Metatrader 5 draws an interesting buy & sell trading channel on the chart based on market volatility.
The trading channel can be used for both trade entry and exit signals and works best for scalping and day trading:
- A bull trend occurs when the volatility channel is sloping upward.
- Trade the buy signals and avoid the sell signals.
- A bear trend occurs when the volatility channel is sloping downward.
- Trade the sell signals and avoid the buy signals.
The volatility channel indicator works for any trading instrument that can be loaded into the Metatrader 5 platform.
The following indicator inputs can be modified: channel period, volatility factor, and volatility smoothing.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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mba_channel.mq5 Indicator (MT5)
Chart Example
The following chart shows what the Forex Volatility Channel indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Forex Volatility Channel Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal occurs when the volatility channel is sloping up and price touches the lower blue channel line.
- Open a buy trade and set your stop loss below the lower blue channel line.
- Close the buy trade when price touches the upper red channel line.
Sell Signal
- A sell signal occurs when the volatility channel is sloping down and price touches the upper red channel line.
- Open a sell trade and set your stop loss above the upper red channel line.
- Close the sell trade when price touches the lower blue channel line.
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mba_channel.mq5 Indicator (MT5)
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 mba_channel.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!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration