Keltner Channel MT4 - MetaTrader 4 Script - MQL5 #55456 - MetaTrader 4 Resources

Keltner Channel (MetaTrader indicator) – is a classic technical analysis indicator developed by Chester W. Keltner in 1960. This indicator is somewhat similar to Bollinger Bands and Envelope Bands. It uses three chart lines: the middle line is a 10-day simple moving average ((high + low + close) / 3) applied to typical prices, and the upper and lower bands are generated by adding and subtracting the moving average of the daily price range (high and low spreads) from the center line. In this way, a volatility-based channel is established. In this version of the indicator you can modify all parameters of the MA. This indicator is available for the MT4 and MT5 versions of the platform.

The classic strategy using this indicator is to go long when the price closes above the upper band and go short when the price closes below the lower band. This seems like a fairly feasible entry system. An exit can be based on three components: a very conservative stop loss (as you can see on the chart, false signals are not uncommon), some fairly distant take profit, and a crossover with the midline. Some traders also recommend using other indicators for confirmation.

Mathematically speaking, a channel represents a band that is more weighted to the upside during an uptrend and a band that is more weighted to the downside during a downtrend. This means that in an established uptrend, the upper line is less likely to be breached. The reverse is also true for an established downtrend.

Attachment download

📎 keltner_channel.mq4 (2.97 KB)

Source: MQL5 #55456