The LeMan Channel indicator for mt4 (Metatrader 4) reveals true trend direction for any pair and time frame with the help of a channel.
The indicator gets displayed in the main MT4 chart window in the form of a purple channel that’s wrapped around the candlesticks.
General Assumptions
- An upward-sloping LeMan channel indicates a rising trend.
- A downward-sloping LeMan channel indicates a declining trend.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “LeManChanel.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The picture below shows the LeMan 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 LeMan 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: Trend Channel
Does the indicator repaint? No.
Leman Channel + Best Forex Scalping Indicator MT4 Strategy
This MT4 scalping strategy combines the Leman Channel Forex Indicator with the Best Forex Scalping Indicator to create a fast, precise trading system for short-term traders. I
t is designed to identify strong momentum moves in the direction of the prevailing trend and catch quick intraday profits on pairs like EUR/USD, GBP/USD, and USD/JPY.
The combination offers a balance between clarity and accuracy, helping traders avoid false breakouts and range traps.
This setup works best on the M1, M5, and M15 charts, making it a great choice for active scalpers who enjoy quick trades and frequent opportunities throughout the day.
The Leman Channel provides the overall trend direction, while the Best Forex Scalping Indicator generates entry signals with color-coded arrows.
How the Strategy Works
The Leman Channel acts as a dynamic trend filter.
When the channel is sloping upward, it indicates a bullish trend; when it slopes downward, the market is bearish.
The Best Forex Scalping Indicator adds timing precision by showing blue arrows for buy entries and red arrows for sell entries.
Combining both gives high-probability setups that align short-term momentum with the broader trend.
Buy Entry Rules
- Ensure the Leman Channel is sloping upward, confirming an uptrend.
- Wait for a blue arrow from the Best Forex Scalping Indicator.
- Enter a buy position immediately at the open of the next candle.
- Place the stop loss below the lower boundary of the Leman Channel or about 10–15 pips, whichever is smaller.
- Set the take profit at 1.5x or 2x the stop loss distance, or near the upper channel line.
Sell Entry Rules
- Ensure the Leman Channel is sloping downward, confirming a downtrend.
- Wait for a red arrow from the Best Forex Scalping Indicator.
- Enter a sell position immediately at the open of the next candle.
- Place the stop loss above the upper boundary of the Leman Channel or about 10–15 pips, whichever is smaller.
- Set the take profit at 1.5x or 2x the stop loss distance, or near the lower channel line.
Advantages
- Combines trend and signal confirmation for more accurate entries.
- Provides clear visual guidance for both beginner and experienced scalpers.
- Effective during high-volume sessions, such as those in London and New York.
- Signals appear in real-time, allowing for quick reactions to market changes.
- Can be used on multiple currency pairs and short time frames.
Drawbacks
- Performance may drop during low-volatility or ranging periods.
- Requires quick decision-making and constant chart monitoring.
- Scalping involves tight stop losses and may lead to frequent small losses before big wins.
- High-frequency trading can result in increased spread costs.
Example Case Study 1: EUR/USD M5
On a recent EUR/USD M5 chart, the Leman Channel started sloping upward from 1.0830, showing bullish momentum.
A blue arrow from the Best Forex Scalping Indicator appeared at 1.0835, confirming the entry.
A buy trade was opened with a 12-pip stop loss and a 20-pip target.
The pair moved to 1.0855 within 30 minutes, hitting the target for a quick 20-pip profit.
Example Case Study 2: GBP/USD M15
During the London session, the Leman Channel turned downward at 1.2890, confirming a bearish environment.
Shortly after, a red arrow appeared at 1.2885.
A sell position was opened with a 15-pip stop loss and a 30-pip take profit.
The trade reached its target within one hour, capturing a smooth 30-pip gain with minimal risk exposure.
Strategy Tips
- Focus on trading during active market hours, such as the London or New York sessions.
- Use strong currency pairs with tight spreads to maximize returns.
- Avoid trading near major news events, as volatility can cause false arrows.
- Once the trade moves in your favor, consider moving the stop loss to breakeven to secure capital.
- Keep chart setups clean and focus on aligning the Leman Channel slope with the arrow direction.
This scalping system, using the Leman Channel Forex Indicator and Best Forex Scalping Indicator, provides a clear, efficient approach for traders seeking short, profitable trades in trending markets.
It allows precise entries with well-defined risk and reward, making it an excellent choice for MT4 scalpers looking to boost performance with disciplined execution.
