Keltner channel smooth ATR Indicator For MT5

Keltner channel smooth ATR Indicator For MT5

Table Of Contents:

  1. Keltner channel smooth ATR Indicator For MT5
  2. Trading ideas with the Keltner channel smooth ATR Indicator For MT5
  3. Keltner channel smooth ATR Indicator For MT5 - Buy Entries
  4. Keltner channel smooth ATR Indicator For MT5 - Sell Entries
  5. Keltner channel smooth ATR Indicator For MT5 - Conclusion

The Keltner channel smooth ATR Indicator For MT5 draws a channel on the chart based on a moving average in the middle and two outer lines. The distance of the two outer lines is defined with a specified ATR value. The ATR has a smoothing algorithm additionally. You can configure the calculation method of the moving average: SMA, EMA, SMMA or LWMA

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The Keltner channel smooth ATR Indicator For MT5 is an advanced channel indicator. Those who are using the channel type trading method knows the complexities associated with finding the perfect channel for opening and closing the trade.

Keltner channel – smooth indicator uses SMA, EMA, SMMA, and LWMA to draw important support and resistance zone. As you install the indicator for the first time, you should see a colored channel. The red part of the channel is more like the support zone and the green part of the channel acts as the active resistance zone.

After close observation, you should see the boundary of the channel is changing its color. The color change plays an important role in trade execution. But don’t worry, we will get everything covered in this guide. After you finish reading this guide, you will be able to use the Keltner channel – a smooth ATR indicator as a premium tool.

But remember, you must have structured knowledge about the trading industry or else it will be a tough call to make a profit based on this premium indicator.


Trading ideas with the Keltner channel smooth ATR Indicator For MT5


When you a system that focuses on the channel-based indicator, you must use a higher time frame. Channel trading strategy is mostly used by the position and range traders. So, those who have a scalping system won’t get a significant advantage from the Keltner channel – a smooth ATR indicator.

Try to integrate this indicator with a system has the potential to find the trade setup in the hourly and daily time frame. Avoid taking trades based on the 30 minute time frame as you will never get the desired results.

Though this indicator can improve your trading performance, still you should stick with your old risk management rule. Breaking the rules and trying to earn more money by increasing the lot size is a very risky approach.


Keltner channel smooth ATR Indicator For MT5 - Buy Entries




There are two methods of taking trades with the help of the Keltner Channel smooth ATR indicator. For our long order, we will go with the general method. This means we will try to open the long trade at the channel support level.

In this method, the color of the bottom boundary of the channel will not have any impact on your trade setup. First of all, use your existing trading method to find the buying zone. Make sure the higher time frame is used so that you can get a much more accurate signal. The support zone should match with the channel support.

A strong bullish rejection at the channel boundary should be spotted in case of the perfect trade setup. After you spot the bullish rejection at the channel support, you can open the long trade. The conservative traders can wait for the change in color at the bottom lining of the Keltner channel.

They should open their long order when the bottom boundary changes to green in color. But this approach often results in big use of stop loss. So, it’s better to use the first method by ignoring the color of the boundary.


Keltner channel smooth ATR Indicator For MT5 - Sell Entries




To take your short trade, we can use the Keltner channel smooth ATR indicator differently. In this segment, we will show you the most advanced use of this indicator. First of all, the channel slope must be negative.

When the channel slope is negative, it tells us the price ready to fall and the bears are dominating the market. Instead of taking the trades at the channel resistance, we will be looking for a break of the mid-band in the Keltner Channel smooth ATR indicator. The price has broken the mid-band and enter into the red zone of the channel.

But there is a trick to such kind of trade setup. The candle needs to be close below the mid-band. Some of the investors often take the trades when even though the candle has not closed. This often leads them to lose money as the mid bands act as a minor support level for the trading instrument.

So, be careful with your trade execution and always think about the safety of the capital. Instead of taking aggressive steps just because the mid-band is breached, lower the risk to 1%. Taking the trades in the mid-band requires the use of wide stop loss. In case you intend to trade with a tight stop loss, you must focus on the price action trading method.

Since mastering the price action trading method is a bit tough task, many retail traders often find it hard to trade in the mind band. This is fine and you can open the trade at the top band. Once you get skilled in using this indicator, try to improve your trading technique by considering the color of the Keltner channel boundary.


Keltner channel smooth ATR Indicator For MT5 - Conclusion


To the novice trader, the Keltner channel smooth ATR indicator will seem like a holy grail. But remember, this not a complete system. Though the channel can provide you dynamic support and resistance, still you should use the trading strategy to find the trade setups.

One of the biggest mistakes while using this indicator is relying on its dynamic band rather than the trading strategy. The function of the indicator is to filter out the good and bad trades. But you have to find the trade setups using your existing trading method.

Instead of doing that, if you start converting the channel as the prime source for the trade execution process, it is going to be a very big challenge to overcome the obstacles. And always remember, trading is not a child game. You have to follow a strategic order and focus on the long term goals. People who find it hard to use the Keltner channel Smooth ATR indicator should focus on the demo trading account.

Use the practice account to develop your skills and it will slowly make you a great trader. But keep in mind, losing trades will be a part of your profession. So be well prepared to accept the losing trades during the major announcement. However, you can reduce the number of losing trades while using this Keltner channel smooth ATR indicator by avoid taking trades during the time of major news release.

 

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