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Draw standard deviation channel

On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can draw the standard deviation channel which is based on the ideas of statistics, linear regression, and standard deviation. It is made up of 3 lines, the linear regression line and the 2 lines above and below it. Unlike the linear regression channel, the locations of the 2 lines are calculated using the standard deviation. Similar to the linear regression channel, the line above represents the resistance line and the bottom line represents the support line. You can use these to predict break points.

Related article: Draw regression channel

Here we'll take a look at how to draw and set up the standard deviation channel in MT4/MT5.

Switch between MT4/MT5 tabs to check the steps for each.

mt4
mt5

Step 1

Click "Insert" in the menu. Hover the pointer over "Channels" and select "Standard Deviation".

Select Standard Deviation from the menu Select Standard Deviation from the menu
point Display the button on the toolbar

The button for drawing the standard deviation channel is not in the toolbar by default, but the button can be made to appear by customizing the toolbar.

Related article: Customize toolbar buttons

In MT4, 5 types of channels are available, including the Andrews' Pitchfork, which is on the "Insert" menu.

  1. Fibonacci

    Fibonacci channel

    Fibonacci channel uses the trendline and creates parallel channel lines using the Fibonacci ratio.

  2. Linear regression

    Linear regression channel

    Draws a center line (regression line) using the close price of each candle, and then draws equally spaced two parallel lines above and below it. The parallel lines pass through the close price farthest from the center line.

  3. Equidistant channel

    Equidistant channel

    Draws two parallel lines. Each line can be moved separately while keeping them parallel.

  1. Standard deviation

    Standard deviation channel

    Draws a center line (regression line) using the close price of each candle, and then draws two parallel lines at a distance of standard deviation from the center line.

  2. Andrews' Pitchfork

    Andrews Pitchfork

    Three parallel lines are drawn using three points: the starting point of the trend and the high and low just after the trend.

Step 2

Click the starting point on the chart and drag it to the end point to create the standard deviation channel.

Draw StdDev channel on the chart Draw StdDev channel on the chart

Step 3

If you want to adjust the position of standard deviation channel, make sure the white dots are being displayed on the standard deviation channel and move each dot as necessary. If you cannot see the white dots, double-click near the standard deviation channel to display the white dots.

Adjust the StdDev channel position Adjust the StdDev channel position

Number

Descriptions

1

Change the starting point of the standard deviation channel.

2

Change the position of the standard deviation channel.

3

Change the end point of the standard deviation channel.

point Values displayed during drawing a standard deviation channel
Values displayed during drawing a StdDev channel Values displayed during drawing a StdDev channel

Values displayed when dragging indicate the numbers of candlesticks and points from the starting point to the end point.

Step 4

To modify the standard deviation channel settings, right-click near the linear regression line of the standard deviation channel and select "StdDev Channel properties...".

Modify the StdDev channel settings Modify the StdDev channel settings

Step 5

On the "Properties" window, edit the parameters in the "Common", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Common tab of the StdDev channel Common tab of the StdDev channel

Number

Item name

Descriptions

1

Name

Name the standard deviation channel.

2

Description

The description can be displayed on the chart when hovering the pointer over the linear regression line.

3

Style

Set the color, line type, and line thickness for the standard deviation channel.

4

Draw object as background

Check this box if you want to place the standard deviation channel behind the chart.

"Parameters" tab

Parameters tab of the StdDev channel Parameters tab of the StdDev channel

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and time.

2

End point position

Specify the end point position by date and time.

3

Ray

Check this box to extend the standard deviation channel to the right.

4

Deviations

Set the standard deviation. If you set it to "2", the standard deviation channel will be formed with ±2σ deviation.

point Use "Ray" for future analysis

"Ray" is a parameter that can be set on an object such as a channel to extend the line beyond its end point. This makes it easier to analyze, as the line will be extended into the future, based on the price movement between the starting point and the end point at a certain point in time.

Ray feature Ray feature

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the standard deviation channel with.

Visualization tab of the StdDev channel Visualization tab of the StdDev channel

Step 1

Click "Insert" in the menu. Hover the pointer over "Objects" > "Channels" and select "StdDev Channel".

Select StdDev Channel Select StdDev Channel

Step 2

Click the starting point on the chart and drag it to the end point to create the standard deviation channel.

Click the starting point on the chart and drag it to the end point to create the standard deviation channel Click the starting point on the chart and drag it to the end point to create the standard deviation channel

Step 3

If you want to adjust the position of standard deviation channel, make sure the white dots are being displayed on the standard deviation channel and move each dot as necessary. If you cannot see the white dots, double-click near the standard deviation channel to display the white dots.

Move each dot as necessary Move each dot as necessary

Number

Descriptions

1

Change the starting point of the standard deviation channel.

2

Change the position of the standard deviation channel.

3

Change the end point of the standard deviation channel.

point Values displayed during drawing a standard deviation channel
Values displayed during drawing a standard deviation channel Values displayed during drawing a standard deviation channel

Values displayed when dragging indicate the numbers of candlesticks and points from the starting point to the end point.

Step 4

To modify the standard deviation channel settings, right-click near the channel and select "Properties of (channel name)".

Right-click near the channel and select Properties of (channel name) Right-click near the channel and select Properties of (channel name)

Step 5

On the "Properties" window, edit the parameters in the "Common", "Parameters", and "Visualization" tabs and click "OK".

"Common" tab

Click OK Click OK

Number

Item name

Descriptions

1

Name

Name the standard deviation channel.

2

Description

The description of the standard deviation channel can be displayed on the chart.
Related article: Show or hide items on chart

3

Style

Set the color, line type, and line thickness for the standard deviation channel.

4

Draw object as background

Check this box if you want to place the standard deviation channel behind the chart.

5

Disable selection

Check this box if you want to disable the editing of the standard deviation channel.

"Parameters" tab

Parameters tab Parameters tab

Number

Item name

Descriptions

1

Starting point position

Specify the starting point position by date and time.

2

End point position

Specify the end point position by date and time.

3

Ray/Fill

Check each box to extend the standard deviation channel to the left and right, or fill inside the channel.

4

Deviations

Set the standard deviation. If you set it to "2", the standard deviation channel will be formed with ±2σ deviation.

When "Ray right" is checked

When Ray right is checked When Ray right is checked

When "Ray left" is checked

When Ray left is checked When Ray left is checked

When "Fill" is checked

When Fill is checked When Fill is checked

"Visualization" tab

On the "Visualization" tab, you can specify the timeframes to use the standard deviation channel with.

Visualization tab Visualization tab

Date

Created

 : 2022.09.08

Update

Last updated

 : 2022.11.09

Writer

Takayoshi Nakamaru

Manual production consultant, MBA

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Takayoshi Nakamaru

Nakamaru is a manual production consultant at FINTECS, a company that specializes in creating manuals for their clients.
With a wide range of experience from fintech to entertainment, he presents what user-friendly manuals should be like.
He works with numerous large corporations as an external manual production project manager.

【Business information】
http://www.fintecs.co.jp/profile/

Supervisor

Akira Takagi

Systems engineer, MetaTrader administrator

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Akira Takagi

After graduating from Computer Science at the Uninove, Brazil, in 2014, he has worked on various systems development projects.
He participated as a developer in the launch of forex services in 2019. Since then, he has also been involved in the development of MetaTrader plugins and APIs. He is certified by MetaQuotes as a MetaTrader5 Administrator and active in consulting and advisory as well.

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