A Keltner Channel is a volatility based technical indicator with 3 separate lines. The middle line is the Exponential Moving Average (EMA) of the price. Two extra lines are placed above and below the EMA. The upper band is normally two times the Average True Range (ATR) above the EMA, and the lower band is normally two times the ATR below the EMA. The bands expand and contract as volatility (measured by ATR) expands and contracts.
Keltner Channel is a MetaTrader 4 (MT4) indicator that can be used with any Forex Trading System for extra confirmation to enter or exit a trade. This indicator works with all currency pairs and all timeframes. Once you download and install the indicator, it will appear in your trading chart, like the image shown above.
Trading Forex is easy if you have the right strategy, indicators, and discipline to stick with the rules and strategy you set. Most professional traders make profitable returns consistently. To become a successful trader, you must invest time in learning forex and develop a profitable trading strategy that suits your trading style. You can find hundreds of forex indicators like Keltner Channel Indicator on our website that can help you in building your trading strategy.
Don’t overcome emotions and greediness, and be patient and stick to your main trading strategy. If the trades are profitable, stick to that strategy. If not, then move to another strategy. You can go to our forex strategies section to explore the latest trading strategies. All these strategies are tested and have shown great results for our members.
Self-discipline is the most important aspect of trading. The market itself is not consistent and may drives traders to a losing trade or position. Therefore, providing a stop loss and take profit is a must. Always use proper money management techniques and to start small when you go live.