The Volty Channel Stop indicator for Metatrader 5 is a popular Forex tool that predicts accurate trend reversals for any currency pair and time frame.
The indicator alternates between buy and sell signals.
When applied to a price chart, the indicator appears as a blue and red colored signal line below and above the candlesticks.
Trading with the Volty Channel Stop indicator is simple and works as follows:
- The blue line below the candlesticks provides a buy trade opportunity.
- The red line above the candlesticks generates a sell trade opportunity.
- The Volty Channel Stop indicator can also serve as a simple-to-use trailing stop loss tool.
The indicator offers the following customizable inputs and parameters: visual mode, MA period, MA method, MA price, ATR period, volatility factor, use envelopes, use alerts, use break, and colors.
Test the indicator first on a demo account before using it on a real trading account.
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volty_channel_stop.mq5 Indicator (MT5)
Chart Example EURUSD M15
The image below shows how the Volty Channel Stop indicator looks when applied to the MT5 charting platform.
How To Buy And Sell Forex Pairs With The Volty Channel Stop Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the blue colored Volty Channel Stop line gets displayed on the price chart.
- Open a buy market order and place your stop loss below the blue colored line.
- Reverse the buy position promptly when the red colored signal line appears on the chart.
Sell Signal
- A sell signal is given when the red colored Volty Channel Stop line gets displayed on the price chart.
- Open a sell market order and place your stop loss above the red colored line.
- Reverse the sell position promptly when the blue colored signal line appears on the chart.
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volty_channel_stop.mq5 Indicator (MT5)
Volty-Supply Breakout Method MT5 Trading Strategy
This strategy leverages the Volty Channel Stop Indicator and the Demand and Supply Forex Block Indicator to identify high-probability breakout trades with clear stop and target zones.
Indicators Used
- Volty Channel Stop: Acts as a dynamic trailing stop and trend confirmation tool.
- Demand and Supply Blocks: Highlights institutional demand and supply zones for precise entries and exits.
Timeframes
This strategy is effective on H1 and H4 timeframes for swing trades, and also works well on M30 for shorter-term trades.
Buy Entry Rules
- A clear demand zone appears below the current price using the Supply and Demand Block indicator.
- The price breaks above the most recent supply block, signaling potential breakout momentum.
- The Volty Channel Stop flips below price, confirming bullish momentum.
- Enter a long position at the break of the supply zone high or on a small retest.
- Set stop-loss just below the last demand block or the Volty Channel Stop line (whichever is lower).
- Target the next supply block or use a 2:1 reward-to-risk ratio.
Sell Entry Rules
- A clear supply zone appears above the current price using the Supply and Demand Block indicator.
- The price breaks below the most recent demand block, signaling bearish pressure.
- The Volty Channel Stop flips above price, confirming downward momentum.
- Enter a short position at the break of the demand zone low or on a retest of the breakout level.
- Set stop-loss just above the last supply block or the Volty Channel Stop line (whichever is higher).
- Target the next demand block or use a 2:1 reward-to-risk ratio.
Tips for Better Results
- Use this strategy in trending markets or after a range breakout.
- Avoid trading inside narrow ranges where supply and demand zones are overlapping.
- Watch for fake breakouts and confirm with Volty Channel direction.
Conclusion
The Volty Channel Stop provides dynamic confirmation of trend changes, while the Supply and Demand Block Indicator identifies key price zones where institutions may take action.
Together, they form a reliable breakout-based strategy with clearly defined risk and reward.
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 volty_channel_stop.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!
