Keltner Breakout Forex Forex Day Trading Strategy
- 1 Keltner Breakout Forex Forex Day Trading Strategy
- 1.1 Keltner Channel Bands – A Different Perspective
- 1.2 Trading Strategy Concept
- 1.3 Kupować (Długie) Zasady instalacji Trade
- 1.4 Sprzedać (Krótki) Zasady instalacji Trade
- 1.5 Wniosek
Channel or band-based indicators are one of the most popular tools among traders, and this might be for a good reason. W tej strategii, we will be exploring one of the most underrated channel-based indicators, the Keltner Channel.
There are several variations of channel or band-based indicators. We have the ever-popular Bollinger Bands, the Donchian Channels, and the Keltner Channel, and probably some more. All these indicators have similar features with a few slight differences. Po pierwsze, all these indicators are based on a midline which is usually a form of an average of the price or a moving average. Następnie, based on the average, which serves as a midline, outer bands are also plotted above and below the midline. These lines are plotted based on different computations and parameters. It could be a deviation from the midline or based on the recent highs or lows. W końcu, all these are plotted on the price chart itself. This allows traders to observe how price reacts to the areas around these lines.
The common way of looking at these indicators is by considering a touch of the midline either as a retrace to the average price or a changing of the trend. The outer lines on the other hand are often considered as overextended areas where price could bounce off from and start reverting to the mean. W pewien sposób, the outer lines are could also be considered as dynamic supports and resistances. These features make channel and band-based indicators very versatile. Having the midline allows traders to see the bias of the market, while at the same time, having the outer bands allow traders to take mean reversion trades.
Keltner Channel Bands – A Different Perspective
The Keltner Channel, much like the other band and channel-based indicators are usually used the same way as the Bollinger Bands. jednak, the Keltner Channel slightly differs with the Bollinger Bands. The midline is still a form of moving average, an exponential moving average. The bigger difference however is with the outer bands. The Bollinger Band uses standard deviations from the mean as the basis for the outer bands. The Keltner Channel on the other hand uses an Average True Range (ATR) as a basis for the outer bands. This makes it more simplistic yet is still very effective.
Having that in mind, there could be two ways to look at the outer bands of the Keltner Channel. The most common paradigm is this. Let’s say price is above the midline therefore we will consider the market as having a bullish bias. Następnie, on the trending market environment, let’s say price bounced off the midline and crossed above the upper outer band. Most mean reversion traders would think it is already overextended because price is already a considerable distance away from the mean. They would then start placing mean reversion trades hoping that price retraces to the mean. Other traders who don’t trade mean reversion could also be put on the sidelines because price is said to be “overextended”. jednak, if you’d come to think of it, we have already established that we are on an uptrend. Price also closed above the upper outer band, which could be a certain multiple of the average range of a candle. This could mean that there is momentum behind the candle closing a considerable distance above the bands. It couldn’t get that far without momentum. We could also say that the candle has broken out of a dynamic resistance, which is the upper outer band.
Trading Strategy Concept
This strategy would consider strong closes beyond the outer bands of the Keltner Channel as a sign of strong momentum. W związku z tym, instead of taking mean reversion trades, we will be taking the trade on the direction of the momentum breakout candle.
By taking this direction, we get to ride the momentum of that candle and probably be in at the start of a new trend.
- Keltner_Channel custom indicator
- Length – 20
- Times ATR – 2
Ramy czasowe: 5-chwila, 15-chwila & 1-Wykres godzin
waluta Pair: any major pairs, minor pairs and crosses with low spreads
Kupować (Długie) Zasady instalacji Trade
- Price should be above the midline of the Kanał Keltner
- A strong momentum candle should close above the upper outer band of the Kanał Keltner
- Wprowadzić porządek na rynku Kup na zamknięciu świecy
- Set the stop loss below the entry candle and the upper outer band
- Trail the stop loss below the midline of the Kanał Keltner until stopped out in profit
Sprzedać (Krótki) Zasady instalacji Trade
- Price should be below the midline of the Kanał Keltner
- A strong momentum candle should close below the lower outer band of the Kanał Keltner
- Wprowadź kolejność rynku sprzedają na zamknięciu świecy
- Set the stop loss above the entry candle and the lower outer band
- Trail the stop loss above the midline of the Kanał Keltner until stopped out in profit
The key to this strategy is identifying the right momentum candle breakout. You shouldn’t be trading just a small pierce of the outer bands as this might still bounce off.
Również, the breakout candle should be coming off a consolidation or an accepted price range on the correct side of the midline or at the midline. If taking a bullish trade, the consolidation should be at the midline or above the midline. Flip it over for the bearish trade setup. Mając to na uwadze, be extra careful in taking trades when the momentum candle came from a consolidation on the opposite side of the band as this might mean that the momentum has already started a few candles back and momentum could already be dissipating.
Ponieważ jest to strategia handlowa na dzień, let’s also discuss timeframes. This particular strategy could also work on some setups aside from what was mentioned above. It could be done on the 1-minute chart or over the 4-hour chart. jednak, on the 1-minute chart, price tends to retrace to the midline quite often even on a clear trend. This could cause you as a trader to be getting in and out of the market a little too often and could cost you much per transaction. This is best traded on the 5-minute chart, but it could also work on the 15-minute and 1-hour chart especially when there is news behind a momentum and the trade started at the beginning of the trading session. Nadal, it could also be used on the 4-hour chart and above as a swing trade, but strong trends don’t seem to last that long on higher timeframes because an opposing sentiment or news could develop as the days go by.
Cheers and happy trading!
Instrukcja instalacji Forex Trading Systems
Keltner Breakout Forex Day Forex Trading Strategy is a combination of Metatrader 4 (MT4 (włas ie) wskaźnik(s) i szablonu.
Istotą tego systemu forex jest przekształcenie zgromadzonych danych historycznych oraz sygnałów transakcyjnych.
Keltner Breakout Forex Day Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Na podstawie tych informacji, przedsiębiorcy mogą zakładać dalszy ruch cen i odpowiednio dostosować ten system.
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How to install Keltner Breakout Forex Day Forex Trading Strategy?
- Download Keltner Breakout Forex Day Forex Trading Strategy.zip
- Kopiowanie mq4 i ex4 plików do katalogu Metatrader / Ekspertów / Wskaźniki /
- Skopiuj plik OC (Szablon) do katalogu Metatrader / Szablony /
- Uruchomieniu lub ponownym uruchomieniu klienta Metatrader
- Wybierz Wykres i czasowe, w którym chcesz, aby przetestować system forex
- Kliknij prawym przyciskiem myszy na wykresie notowań i unoszą się na “Szablon”
- Move right to select Keltner Breakout Forex Day Forex Trading Strategy
- You will see Keltner Breakout Forex Day Forex Trading Strategy is available on your Chart
*Uwaga: Nie wszystkie strategie forex pochodzą z mq4 / plików EX4. Niektóre szablony są już zintegrowane ze wskaźnikami MT4 z platformy MetaTrader.
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