Technical Indicators for MetaTrader 5
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MetaTrader 5
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Overview
The Chapon Channel indicator is a classic channel indicator that allows a trader to react when the price goes beyond the boundaries of the established channel. This channel is formed based on the analysis of several candles, starting with the last one, in order to determine the extremes in the period under consideration. These extrema are then used to construct channel lines.
Channel trading is one of the most popular strategies in the Forex market and due to its simplicity, even beginners can use this trading method. The Chapon Channel indicator allows traders to monitor the channel and provides signals to enter the market when the boundaries of this channel are reached.
If you look closely at the price chart, you will notice that the price rarely moves straight up or down. Instead, it fluctuates around a certain range. These fluctuations usually occur between formed highs and lows over a certain period.
This is due to the fact that traders often try to break through highs or lows, since the basic rule of a trend is that during the development of a trend, price extremes (lows or highs) should be constantly updated depending on the direction of movement.
The Chapon Channel indicator helps to catch these changes and provides a more efficient price chart reading for the trader.
