Keltner Channels Indicator consists of volatility envelopes. Keltner Channels is similar to Bollinger Bands which use standard deviation to calculate the bands. Keltner Channels use Average True Range (ATR) to set the bands.
Keltner Channels Indicator is a trend following indicator. It is used to identify reversals and channel breakouts out of the channel. It is also used to identify overbought and oversold levels when the market is raging. Middle channel consists of EMA.
When learning and if you are beginner with Forext Trading Keltner Channels is a good tool for you since you can easily visualize the swings and the channel that Forex Price Action is making.
There are couple of strategies you can use Keltner Channels Indicator with. One of the more popular ones is Keltner Channel Strategy
This are the available settings for Keltner Channels Indicator:
How to install Keltner Channels Indicator in MetaTrader 4 / MT4:
- Download/Copy/Save the MQ4/EX4 file into your C:\Program Files\MetaTrader 4\experts\indicators folder (or change the folder to your installation sometimes forex broker name)
- Restart your MetaTrader 4 application (assuming it’s currently open) … or Launch your MetaTrader 4 application
- On the left hand side, look for the “Navigator” window and under the “Common” tab, look into the “Custom Indicators” section
- Locate the indicator which you have just downloaded into the folder stated in Step 1
- Drag (Click and drag) the indicator onto the chart
- Choose your settings and click OK.
- TADA and your done!