Constant Range Channel Indicator MT4 | MT5

The CRC indicator falls under the channels category of indicators, but unlike other channel indicators, which expand and contract based on volatility, its range between the two bands is predefined and remains unaffected by market volatility. This setup helps traders identify dynamic support and resistance levels and potential breakout zones.

To make the best trade decisions based on this indicator, traders should follow one of these strategies:

• Range trading: The middle line (yellow) is horizontal 

- When the price reaches the upper band (Blue line) that acts as a resistance level, signaling a selling opportunity.  

- When the price drops to the lower band (Red line) that acts as a support level, signaling a buying opportunity.

• Breakout trading: The middle line (yellow) moves up or down up or down

- A strong breakout above the blue band indicates a bullish movement, signaling a long opportunity. 

- A strong breakout below the red band indicates a bearish movement, signaling a short opportunity.

It is highly recommended, especially during range trading, to combine the CRC with other technical analysis indicators to avoid false signals and to confirm trade decisions before entering the market. 

In this section, I will provide our visitors with two trading examples to help them understand how to use this indicator profitably. 

In the USDCHF daily chart example on MT4, during a ranging market condition, the price reaches the upper band, which acts as resistance, it signals a selling opportunity. Conversely, when the price falls near the lower band, which acts as support, it indicates a buying opportunity. In both cases, the market responds accordingly to the indicator.

In the EURGBP H4 chart example on MT5, a breakout above the upper band signals bullish momentum and the start of an uptrend. Toward the trend's end, after a ranging phase, the price drops below the lower band, indicating a breakout and a potential trend reversal. This suggests that traders should exit long positions and consider entering short on the pair.

While the indicator provides strong signals in both cases, traders should complement it with other technical indicators, which are available for FREE to download on our platform, for more accurate real-time analysis.