Channels

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Welcome to currency trading with Profiforex!
This video is devoted to Channels as the category of graphical objects.
On the whole channel is a price diapozon that limits price fluctuation.
Channels can be either horizontal, such as during a flat market, or inclined when there is a tendency in the market.
Also, channels differ by the method of identification and setting borders.
The first channel type we'll examine is the Linear Regression Channel. In order to draw this tool, we need the starting and ending points.

The borders of the channel are created automatically with the help of statistical methods.
It can be said that the more significant movement of the price will be in the selected chart area, while the narrower will be the linear regression channel.
The Equidistant channel can also be called a trend channel. This graphical instrument helps to build a simple channel consisting of two parallel lines,
with the distance between them being set manually.

To build this channel, we must determine the slope of the channel with the help of two points, and then specify the distance between the boundaries of the channel using a marker on the second line.

Next is the Standard Deviation channel. This is similar to the linear regression channel, because statistical methods are also used to establish its boundaries.

In this case, the distance between the boundaries of the channel is calculated as a specified number of standard deviations of price from its average value at a certain time interval.Standard deviation is a statistical parameter. It's calculated automatically, and the number of deviations can be set in the properties of the object.
The Fibonacci channel is one in which the scope and width are set manually but in which additional levels are constructed automatically.
These levels are calculated in percentage points from the current width of the channel with the help of a Fibonacci sequence.

Remember this point: You can define the number and values of these levels by yourself in the "Properties" window of the object.
At the same time, it is not necessary that they have anything in common with the Fibonacci sequence.