Keltner Channels is an efficient and simple trading system. It is intended to help a forex trader to clearly identify the presence of a trend movement and a flat is formed. If used correctly, the strategy allows you to make a stable profit on any trading instruments and timeframes.
To reduce the number of false signals, it is advisable to use the H1 chart and above.
Keltner Channels – These are price envelopes or bands located on both sides of the average EMA (10), obtained by multiplying by the ATR value (“Average True Range”).
To use this strategy on the chart, you must set:
1. KeltnerChannels indicator
2. ADX indicator with a period of 14, and add level 30
Opening a short position:
We open a deal using a pending order, which is located below the low of a closed candle, or by the market if the following conditions are met:
1. The candlestick closed below the level of the lower line of the KeltnerChannels indicator.
2. -DX crossed the + DX parameter until the breakout of the Keltner channel (favorable when -DX passed level 30).
3. The green line of ADX passed the level 30 from the bottom up.
4. StopLoss is fixed below the local maximum or above the upper channel line.
5. The Take-profit value is not set. We close the position when the price closes above the lower channel line again.
Opening a long position is exactly the opposite.
