The Linear Regression Channel indicator for MT4 is a typical support and resistance trading tool.
The red upper line represents the resistance area.
On the contrary, the blue line represents the support area.
In down trending markets, sell around the red resistance line.
In up trending markets, wait for the price to retrace back to the support line and then buy, as shown in the image below.
Always use this tool in conjunction with other indicators or systems in order to pin-point your entry signals.
EUR/USD Daily Chart Example
How to install the Linear Regression Channel custom indicator in Metatrader 4?
- Download the Linear Regression Channel.mq4 indicator to your computer.
- Open your Metatrader 4 platform.
- Open the data folder from the top menu.
- Open the MQL4 folder.
- Open the indicators folder.
- Paste the indicator file in this folder.
- Restart the trading platform.
- Open any trading chart.
- Attach the indicator to the chart.