The Standard Deviation Channel indicator for Metatrader 5 draws a buy/sell trend channel on the chart that works well for scalpers and day traders.
The indicator gets displayed as a colored channel that makes it easy for short-term traders to take advantage of market trends.
It can be used as a buy on dips and sell on rallies Forex trading system.
How to interpret the Standard Deviation indicator?
- An upward sloping channel is bullish.
- A downward sloping channel is bearish.
The following indicator inputs and parameters can be modified: period, deviation, style.
The Standard Deviation Channel indicator works for any trading instrument (Forex, Stocks, Indices, etc.) that can be loaded in the Metatrader 5 platform.
Make yourself familiar with this technical indicator and test it first on a demo account.
It supports all time frames and Forex pairs.
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The following chart shows how the Standard Deviation Channel indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Standard Deviation Channel Scalper Indicator?
Find a simple trading example below:
- A buy signal occurs when price touches the lower channel band and the channel is sloping up (see chart above).
- Initiate a buy transaction and place a stop loss slightly below the lower channel band.
- Close the buy trade at one of the upper green colored channel bands.
- A sell signal occurs when price touches the upper channel band and the channel is sloping down.
- Initiate a sell transaction and place a stop loss slightly above the upper channel band.
- Close the sell trade at one of the lower magenta colored channel bands.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Standard_Deviation_Channels_x3_Cloud.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration