Percentage Trend Channel MT5
How much are you ready to profit from a deal? Since the duration of a trend is not known in advance, the answer will not have a precise definition - as much as you can until the stop loss triggers. How much are you ready to lose in a deal? The answer to this question, perhaps, is more clear - depending on the size of the deposit, on the leverage, it is as a rule a certain percentage of the deal or of the deposit.
Indicator Percentage Trend Channel displays borders of the trend channel, calculating the levels of rollback/correction in the percentage of a virtual trade, starting from the selected candlestick.
The indicator is useful not only for setting stop loss, but, in general, will help you find the optimal entry points on a trend reversal and trend corrections.
Indicator controls are two vertical line: dashed line is the main one, dash-and-dot line is auxiliary.
The indicator operation mode is determined by the color of the main dashed vertical line:
- Blue mode – a channel is drawn with an automatic trend direction. Set the color of the vertical dashed line, grab it with the mouse and move along the chart from end to the beginning, from right to left, and watch the channel construction. As soon as you stop moving the line, its color automatically, depending on the trend direction, changes to LimeGreen or Magenta.
- LimeGreen (or Green) mode – editing an upward channel. Set the color of the vertical dashed line, move the vertical dashed line left or right. Watch the upper extreme points of the chart when stopping, observe the channel construction.
- Magenta (or Red) mode – editing the downward channel. Set the color of the vertical dashed line, move the vertical dashed line left or right. Watch the lower extreme points of the chart when stopping, observe the channel construction.
Once the channel is ready, wait for the price bounce from its green border.
Indicator calculates in the interval between the vertical lines (dashed and dash-dotted) and calculates the percentage of channel rollback. However, it does not use the price on the chart, but uses the virtual trade starting from the dash-dotted line.
Further green boundary of the channel is constructed from left to right on the basis of this percentage.
The green boundary is used both for entries (or adding positions) and exits (stop loss).
When the green boundary is broken, there are two possible options - expansion of the current channel, or the channel reversal.
The red boundary only serves to visually identify the channel correctness.
It works on every single timeframe. However the channel is stronger on larger timeframes
The indicator features:
The indicator stores the channel position for each period and each individual instrument.
The channel is drawn by three lines:
- The solid red channel line starts from the vertical dash-dotted line and moves towards the beginning of the chart, from right to left, to the nearest candlestick that crosses its trajectory.
- The solid green channel line starts from the vertical dashed line and moves towards the end of the chart, from left to right, to the nearest candlestick that crosses its trajectory.
- The green dashed line is a channel correction, it starts from the dashed vertical line and moves towards the end of the chart, from left to right, to the nearest candlestick crossings its path.
The channel is considered optimal:
- If it is long enough.
- If its borders are barely touching the upper and lower extrema of the chart.
- If the distance between the solid green and dashed green lines is minimal, ideally they are almost identical.
- If the path of the green line is to crossed by any candlesticks.
Good luck in trading.