The Logarithmic Regression Channel indicator for mt4 (Metatrader 4) identifies rising and falling currency markets and works great for trade entries.
The indicator gets displayed in the main MT4 chart window and consists of the 3 lines that form the Logarithmic Regression Channel.
Buy & Sell Trade Example
- Open a buy trade when the candlestick touches the lower blue channel line and the channel is trending up.
- Open a sell trade when the candlestick touches the upper blue channel line and the channel is trending down.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Logarithmic_Regression.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Logarithmic Regression Channel mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Logarithmic Regression Channel indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Regression Channel
Does the indicator repaint? No.
Logarithmic Regression Channel + Jevel Trend Bar MT4 Day Trading Strategy
This MT4 day trading strategy combines advanced regression analysis with a reliable momentum signal for accurate intraday trading.
The Logarithmic Forex Regression Channel Indicator for MT4 automatically draws dynamic rising or falling channels based on market structure.
A rising channel indicates a bullish trend, while a falling channel reveals a bearish one.
The Jevel Trend Bar Indicator for MT4 shows green histogram bars for buy signals and orange bars for sell signals, helping traders confirm momentum before entering.
This combination offers structure and timing: the regression channel identifies the broader trend direction, and the Jevel Trend Bar confirms the strength and continuation of that move.
The strategy is best used for day trading on M30 and H1 timeframes, especially during high-volume sessions such as London and New York.
Buy Entry Rules
- Ensure the Logarithmic Regression Channel is sloping upward, showing a bullish market structure.
- Wait for the price to pull back near the middle or lower boundary of the channel.
- Confirm that the Jevel Trend Bar indicator displays green histogram bars, indicating upward momentum.
- Enter a buy trade at the close of the confirming candle.
- Place the stop loss 15–20 pips below the lower boundary of the channel or below the previous swing low.
- The take profit target should be near the upper channel boundary or 35–60 pips above the entry, depending on volatility.
Sell Entry Rules
- Ensure the Logarithmic Regression Channel is sloping downward, showing a bearish structure.
- Wait for the price to pull back toward the upper boundary of the falling channel.
- Confirm that the Jevel Trend Bar indicator displays orange histogram bars, signaling bearish pressure.
- Enter a sell trade at the close of the confirming candle.
- Place the stop loss 15–20 pips above the upper boundary of the channel or above the last swing high.
- Set take profit near the lower channel boundary or 35–60 pips below the entry.
Advantages
- Combines trend structure with real-time momentum confirmation for accuracy.
- Helps traders identify pullback entries instead of chasing breakouts.
- Adaptable to different pairs and timeframes for day trading.
- Provides flexible profit targets based on channel dynamics and volatility.
Drawbacks
- False signals may occur if the regression channel flattens during consolidation.
- Whipsaws can appear when market conditions are choppy or news-driven.
- Performance can drop during very low-volume periods.
- Requires traders to monitor trades actively rather than a set-and-forget style.
Example Case Study 1 (EUR/JPY, H1)
On EUR/JPY H1, the Logarithmic Regression Channel showed a clear upward slope.
After a minor pullback to the midline, the Jevel Trend Bar printed several consecutive green bars, confirming bullish momentum.
A buy trade was entered at 162.45 with a stop loss at 162.20.
The pair climbed steadily throughout the London session and hit 163.05 before slowing down, producing a 60-pip profit.
This trade reflected the strategy’s strength: trend alignment plus momentum confirmation.
Example Case Study 2 (NZD/USD, M30)
On NZD/USD M30, the regression channel was clearly descending, marking a bearish trend.
Price tested the upper channel boundary during the New York session.
Soon after, the Jevel Trend Bar turned orange, confirming renewed selling pressure.
A short position was opened at 0.5928 with a stop loss at 0.5945.
Within three hours, the price fell to 0.5892, yielding a clean 36-pip profit.
The combination of structural and momentum alignment worked perfectly.
Strategy Tips
- Trade only when the regression channel shows a clear upward or downward slope; avoid flat or sideways conditions.
- Monitor major sessions (London and New York) for stronger moves and cleaner signals.
- Check for key news events before entry to avoid unexpected spikes.
- Consider partial profit-taking near the channel’s midline if momentum starts to weaken.
- Backtest on multiple pairs like EUR/JPY, GBP/USD, and NZD/USD to see which react best to this setup.
- Maintain a risk-to-reward ratio of at least 1:1.5 to ensure long-term profitability.
By combining the Logarithmic Regression Channel Indicator with the Jevel Trend Bar Indicator, traders can follow market structure while confirming entries with solid momentum.
This synergy creates a powerful day trading framework that captures strong directional moves with precision and discipline.
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Download the “Logarithmic_Regression.mq4” indicator for Metatrader 4
