Watch the testing video here:
Keltner Channel Smooth ATR Indicator
Introduction to the Keltner Channel Smooth ATR Indicator
The Keltner Channel Smooth ATR Indicator is a volatility-based envelope that is aligned above and below a Moving Average, which is a central element of that indicator. In the settings of that Keltner Channel indicator, you can set the median value average method among the: Exponential Moving Average, Simple Moving Average, Smoothed Moving Average, and Linear Weighted Moving Average. Another feature of this forex indicator is the use of the smooth ATR. In other words, the Keltner Channel Smooth ATR indicator uses the smooth ATR to set the channel distance.
The Keltner Channel Smooth ATR Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
As you can see on the charts with the Keltner Channel Smooth ATR Indicator loaded, the area above central MA is green-colored, and below it is orange-colored. Please notice, that also channel bands are also colored, depending on the signal direction. Detailed instructions are provided below.
Follow these steps for a long trade:
- Price is above the central MA (green area)
- Upper band color changes from orange to green
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the central MA
- Take profit or exit trade whenever the price touches the central MA or use your own method of trade exit
Share this on: