The MetaTrader Price Channel expert advisor draws the support and resistance levels, then trades when the price bounces back from the channel's levels.
The price Channel pattern is made of two trend lines positioned above (resistance) and below (support) the price. The price action is contained between these two parallel trend lines. The separation between the two trend lines needs to be wide enough to trade inside the Price Channel pattern. Traders can buy at the channel support level and sell at the channel resistance level.
The Channel Trading Expert Advisor for MetaTrader was designed to make possible trading within an ascending or descending price channel, therefore trading with the trend of that particular channel. So basically the Channel EA is made for trend trader who prefer to trade with the trend. To make sure that the EA's price channel doesn't go against a main trend, the expert advisor is also equipped with a simple but powerful trend detector that can be used along with the channel's trend. In a nut-shell, for a buy signal to be valid (and the EA to open a long trade), the trend must be an uptrend and the price channel rising; vice-versa for short trades.
