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EA NameKeltner Channel
PlatformMT4, MT5
Download MQ4 Format | MQ5 Format
Brief

Keltner Channel (MetaTrader indicator) — is a classical technical analysis indicator developed by Chester W. Keltner in 1960. The indicator is somewhat similar to the Bollinger Bands and Envelopes. It uses three plot lines: the middle line is the 10-day simple moving average applied to the typical price ((high + low + close) / 3), the upper and the lower bands are produced by adding and subtracting the moving average of the daily price range (High and Low difference) from the middle line. This way, a volatility-based channel is built. In this version of the indicator you can modify all the parameters of the MA. The indicator is available both for MT4 and MT5 versions of the platform.

Input parameters:

  • MA_Period (default = 10) — the period of the moving average (middle line).

  • Mode_MA (default = MODE_SMA) — the mode of the moving average (middle line).

  • Price_Type (default = PRICE_TYPICAL) — the applied price of the moving average (middle line).

 Keltner Channel Forex Indicators

The classical strategy with this indicator is to go long when the price closes above the upper band and to go short when it closes below the lower band. It seems to be a rather viable entry system. Exits can be based on a very conservative stop-loss (as you see on the chart, the false signals are not uncommon), a rather high take-profit and a cross with the middle line. Some traders also suggest using other indicators for confirmation.

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