iDouble Channel Indicator MT4 | MT5

The iDouble Channel is a trend-following indicator designed to aid traders in identifying market direction. It consists of one middle line and two lines, a red and a blue one, that are based on moving averages of price movement.

• The red line acts as a support level during an upward trend and as a resistance level during bearish trends.
• The blue aids in identifying price reversal when it crosses below or above the other line.
• The middle yellow line is represented as a baseline trend.

Furthermore, the iDC displays two colored arrows, blue and red, signaling potential buying and selling opportunities; respectively. Traders can choose one of the following strategies based on the market condition and the signals provided by the indicator.

• Trend Continuation: 

- Buy signal: In an uptrend, when the red channel line remains above the blue one and below the price, it indicates a continuation of bullish momentum, presenting a strong buying opportunity once the price rebounds from the red level (acts as support level).

- Sell signal: During a downtrend, when the red line of the channel stays below the blue one and above the price, it signals a continuation of the bearish movement, presenting a strong selling opportunity once the price bounces from the red line (acts as resistance level). 

• Potential Reversal:

- If the red line breaks above the other one, toward the end of a downward trend, alongside the appearance of a blue arrow, it signals a bullish reversal and a long opportunity.

- If the red line breaks below the blue line, toward the end of an upward trend, with the appearance of a red arrow, it signals a bearish reversal and a short opportunity. 

1- In the USDCHF trading example, as shown on the MetaTrader 4 chart, when a blue arrow appears and the red line remains above the blue one, it suggests a bullish trend. Any rebound of the price from the support line may be taken as another buying opportunity to make additional profit. 

Toward the trend's end, the middle line stays horizontal suggesting a consolidation phase. When the red line breaks below the blue line with the appearance of a red arrow, it signals a bearish reversal and a strong short opportunity.

2- In the EURAUD trading example, as presented on the MetaTrader 5 chart, the indicator displays a red arrow, indicating a bearish trend. With the red line remaining below the blue line, it suggests the continuation of the downtrend. Any rebound from the resistance level reopens another short opportunity.

Toward the trend's end, the red line breaks above the other one, alongside the appearance of the blue arrow, all of these conditions signal the beginning of the uptrend and a potential buying opportunity in the market.