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Keltner Channel Indicator for MT4

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Keltner Channel Indicator for MT4

Introduction to the Keltner Channel Indicator

Table of Contents

Band-types or Channel-types of technical indicators are some of the most versatile types of technical indicators. It often can be used to identify momentum, trend direction, volatility, and oversold or overbought market conditions.

What is the Keltner Channel Indicator?

The Keltner Channel indicator is a band-based technical indicator which plots a channel around price action. This indicator can help traders identify trend direction, momentum, volatility, as well as mean reversals coming from overbought or oversold price levels.

It is somewhat similar to the Bollinger Bands. The difference is that it plots a smoother structure compared to the Bollinger Bands.

Keltner Channel Indicator for MT4

Keltner Channel Indicator for MT4

How the Keltner Channel Indicator Works?

This version of the Keltner Channel uses a Simple Moving Average (SMA) line as a basis for the middle line of the channel. It then plots the SMA line as a blue dot-dash line.

The outer lines of the Keltner Channel are based on the SMA line, shifted above and below the middle line. It uses an Average True Range (ATR) as a basis for the shift of the lines. It then plots the outer lines as solid red lines using this formula.

This creates a channel-like structure which is based on an SMA line, which also indicates volatility based on the ATR.

How to use the Keltner Channel Indicator for MT4

The Keltner Channel indicator has one variable within its settings. It allows traders to modify the “Period”, which is the number of periods used for computing the Simple Moving Average line.

How the Keltner Channel Indicator Works

How the Keltner Channel Indicator Works

There are various ways to use the Keltner Channel indicator.

It can be used as a volatility indicator based on the expansion and contraction of the channel.

It can also be used to determine trend direction based on where price action generally is in relation to the middle line.

It can also be used as a mean reversal indicator based on price action rejecting the outer lines.

It can also be used as a momentum breakout indicator based on a strong momentum candle closing beyond the outer lines of the channel.

Buy Trade Setup

When to Enter?

Open a buy order as soon as a strong bullish momentum candle closes above the upper outer line of the Keltner Channel. Set the stop loss below the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a possible bearish reversal.

How to use the Keltner Channel Indicator for MT4 - Buy Trade

How to use the Keltner Channel Indicator for MT4 - Buy Trade

Sell Trade Setup

When to Enter?

Open a sell order as soon as a strong bearish momentum candle closes below the lower outer line of the Keltner Channel. Set the stop loss above the entry candle.

When to Exit?

Close the trade as soon as price action shows signs of a possible bullish reversal.

How to use the Keltner Channel Indicator for MT4 - Sell Trade

How to use the Keltner Channel Indicator for MT4 - Sell Trade

Conclusion

There are many ways to use the Keltner Channel. As mentioned above, it is a very versatile technical indicator. It can provide traders with a lot of information regarding the current market condition using only a single technical indicator. It can also be used to trade various trade setups, whether momentum breakouts, mean reversals, or trend following strategies, using only this indicator.

MT4 Indicators – Download Instructions

Keltner Channel Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.

Keltner Channel Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies

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How to install Keltner Channel Indicator for MT4.mq4?

  • Download Keltner Channel Indicator for MT4.mq4
  • Copy Keltner Channel Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
  • Start or restart your Metatrader 4 Client
  • Select Chart and Timeframe where you want to test your MT4 indicators
  • Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
  • Right click on Keltner Channel Indicator for MT4.mq4
  • Attach to a chart
  • Modify settings or press ok
  • Indicator Keltner Channel Indicator for MT4.mq4 is available on your Chart

How to remove Keltner Channel Indicator for MT4.mq4 from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader 4 Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete

Keltner Channel Indicator for MT4 (Free Download)

Click here below to download:

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