Keltner Channel Indicator Free Download for MetaTrader 5 | Forex Indicator Download - MT4/MT5 Resource

On July 22, 2025, in version 2, the indicator added alerts/notifications and signals functionality

The Keltner Channel indicator is one of the MetaTrader 5 indicators used for trend following trading strategies . The channel uses an exponential moving average (EMA) to detect uptrends , downtrends , or range-bound markets , while the ATR (average true range) calculates the range of the channel.

The upper channel band is equal to EMA plus two times the ATR , and the lower is EMA minus two times the ATR . These bands can act as dynamic support and resistance levels, providing traders with entry and exit points on breakouts.

Keltner Channel Indicator Table

Bullish and Bearish Conditions for Keltner Channel Indicator

Keltner Channel Indicators at a Glance

This indicator helps traders identify market entry and exit points and make better decisions through price fluctuation analysis.

Unlike other band-based indicators, such as Bollinger Bands , which use the Simple Moving Average (SMA) , the Keltner Channel uses the Exponential Moving Average (EMA) and ATR , making it more sensitive to price changes and more accurate in detecting volatility.

Dow Jones Index Price Chart

The chart below shows the Dow Jones Industrial Average (US30) on a 30-minute time frame. The channel slows bullishly at point A, and the price breaks through the upper track line strongly. In this case, traders can enter buy positions after receiving confirmation from other analytical tools.

At point B , the downward speed of the Keltner Channel slowed down, and the lower track was strongly broken, indicating a bearish trend and entry into sell positions .

Uptrend conditions of the indicator (buy position)

The chart below shows the Nasdaq Index (NAS100) on a 5-minute time frame. At point A , price breaks above the 20-period EMA and breaks out of the upper channel band (breakout), signaling a bullish trend and traders can enter buy positions .

Downtrend conditions of the indicator (sell positions)

The chart below shows the S&P 500 Index (US500) on a 1 hour time frame. At point A , price moves below the 20-period EMA and breaks out of the lower channel band (breakout), signaling a bearish trend and traders can enter sell positions .

Keltner Channel Indicator Settings

• Period of EMA: The period of the Exponential Moving Average (EMA) is set to 20;
• Period of ATR: The period of the ATR Indicator is set to 10;
• ATR Multiplier : The multiplier of the distance between the band and the moving average is 2;
• Display prices at levels: Set to true to display prices next to the strips.

Conclusion

The Keltner Channel Indicator helps analyze market fluctuations and identify trading opportunities. By utilizing exponential moving averages and ATR , the volatility indicator helps traders understand price ranges and discover potential entry and exit points. However, like any other tool, the Keltner Channel should be combined with other indicators and analytical tools to provide traders with more significant confirmation.