Equidistant Price Channel is a free mt4 (Metatrader 4) indicator that displays a simple-to-use trend channel on the trading chart.
The indicator offers multiple trade opportunities for quick profits almost every day.
The indicator appears in the main MT4 chart window as a colored red trend-following channel.
Equidistant Price Channel can be used in multiple ways.
Buy and Sell Example
- Open a buy trade whenever the candlestick touches the lower red channel line and the channel is sloping up (bullish trend).
- Open a sell trade whenever the candlestick touches the upper red channel line and the channel is sloping down (bearish trend).
- Take profit at the opposite channel line.
The Equidistant Price Channel indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “equidistant-price-channel.mq4” indicator for MT4
Indicator Chart (EUR/USD M30)
The example chart below displays the Equidistant Price Channel mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Equidistant Price Channel Forex 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: Channel
Does the indicator repaint? No.
MT4 Day Trading Strategy: Equidistant Price Channel & Elite PRO Scalper
This day trading strategy leverages the Equidistant Price Channel and Elite PRO Scalper indicators for MT4 to identify high-probability trade setups in trending markets.
By combining the structural insights from the Equidistant Price Channel with the precise entry signals from the Elite PRO Scalper, traders can enhance their decision-making process.
This approach is particularly effective on lower timeframes such as M5 and M15, making it suitable for active day traders seeking consistent profits.
Buy Entry Rules
- Ensure the price is within an upward-sloping Equidistant Price Channel, indicating a bullish trend.
- Wait for the Elite PRO Scalper to display a blue arrow, signaling a buy opportunity.
- Enter the trade at the close of the candle that confirms the blue arrow signal.
- Place the stop loss just below the lower boundary of the Equidistant Price Channel to protect against potential reversals.
- Set a take profit target at a risk-reward ratio of 1:2, or exit the trade when the Elite PRO Scalper shows a red arrow, indicating a potential trend reversal.
Sell Entry Rules
- Confirm that the price is within a downward-sloping Equidistant Price Channel, indicating a bearish trend.
- Wait for the Elite PRO Scalper to display a red arrow, signaling a sell opportunity.
- Enter the trade at the close of the candle that confirms the red arrow signal.
- Place the stop loss just above the upper boundary of the Equidistant Price Channel to mitigate potential losses.
- Set a take profit target at a risk-reward ratio of 1:2, or exit the trade when the Elite PRO Scalper shows a blue arrow, suggesting a possible trend reversal.
Advantages
- Provides clear and actionable trade signals, reducing decision-making time.
- Combines structural analysis with momentum indicators for a comprehensive trading approach.
- Suitable for traders seeking to capitalize on short-term price movements in trending markets.
- It can be adapted to various currency pairs and timeframes, offering flexibility in trading strategies.
Drawbacks
- May produce false signals during periods of low volatility or choppy market conditions.
- Frequent trading can lead to higher transaction costs, which may impact overall profitability.
Example Case Studies
Case Study 1
On a 5-minute EUR/USD chart, the price was within an upward-sloping Equidistant Price Channel, indicating a bullish trend.
The Elite PRO Scalper displayed a blue arrow, signaling a buy opportunity.
The trader entered the trade at the close of the confirming candle, placed the stop loss below the lower boundary of the channel, and set a take profit target at twice the risk.
The trade was successful, yielding a profit as the price continued to rise.
Case Study 2
On a 15-minute GBP/USD chart, the price was within a downward-sloping Equidistant Price Channel, indicating a bearish trend.
The Elite PRO Scalper displayed a red arrow, signaling a sell opportunity.
The trader entered the trade at the close of the confirming candle, placed the stop loss above the upper boundary of the channel, and set a take profit target at twice the risk.
The trade was profitable as the price declined, reaching the take profit level.
Strategy Tips
- Use higher timeframes (e.g., M30 or H1) to identify the overall trend direction before applying this strategy on lower timeframes.
- Monitor economic news releases that may impact market volatility and adjust trading activity accordingly.
Download Now
Download the “equidistant-price-channel.mq4” indicator for Metatrader 4
