Keltner Channels and EMA Strategy For MT4
Table Of Contents:
- Keltner Channels and EMA Strategy For MT4
- Keltner Channels and EMA Strategy For MT4 Long trade setup
- Keltner Channels and EMA Strategy For MT4 Short trade setup
- Managing the trades
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Keltner Channels and EMA Strategy For MT4 are devised on the rule moving average. The exponential moving average tends to react to the most recent price movement. People who are using the EMA for the first time are likely to use it in the wrong way.
As EMA emphasizes on the recent price movement, investors often forget that the short term fluctuation in price can change the slope of EMA. But when the Keltner channel principle has meshed with the EMA strategy, you get a well balanced and powerful system that can work for any instrument. We are talking about a well-prepared strategy that can be used in any time frame at any moment.
If things are done in the correct order, no have to complain about trading is a tough task. For better understanding, every step will be discussed strategically so that investors don’t feel lost. When rules of this guide are followed exactly as it is, 90% of the time you will be winning the trades. But this system has one major drawback. Instead of relying on the minute's chart, investors get to involve them in the hourly chart. The hourly chart contains stacked data that is deciphered to find the best setups. Analyzing the stacked data is very tough as people don’t know how pro deals with important data.
But this is a very simple process and everything can be done in an orderly manner. People who forget to take key steps at the right time should not depend on this edge. Though you can choose any time frame as SL and TP are manually placed, still it is super important to take steps according to this guide.
Keltner Channels and EMA Strategy For MT4 Long trade setup
There are two basic techniques to open trades. Most people don’t know how they should use the edge. But for the buying order, we are going to teach how the false breakout can give us a strong idea about the trade setup. For this, the overall trend must be upward. In the absence of a bullish trend, you must not wait for the long trade setup. The white channel or the Keltner band gives us important point notification.
The first point to notice is a false break. The support line of the Keltner channel will be broken with the bearish bar and the consolidation pattern will form. The consolidation pattern will be broken with the bullish candle. The candle will go ab over the white band and this will show the price has the affinity to go up. The next thing is to wait for the bearish correction.
The drop in the price will lead to the test of the support band and this should give you the signal to open the long. The longer order will be taken with 1% risk exposure and investors should not try to increase it.
If the risk is increased by over 1%, it will be a very big challenge. People usually don’t have the skill to deal with such losses. Keep the risk exposure simple so that you don’t get stressed as a user of the edge.
Keltner Channels and EMA Strategy For MT4 Short trade setup
The regular method will be applied to a short trade. But we will teach the process by which the new trend reversal can help us to earn money. The reversal trading process is a very tough technique and it imposes a great level of threat. Not if you read this guide. The EMA that has period 8 will sharply fall and the bearish candle will be bigger than the bullish one.
The white support level of the Keltner channel will be breached. Note that the mid-band in the Keltner channel won’t provide any strong support to the asset. Slope at the red EMA and the Keltner channel will sharply change. As the elevation angle becomes negative, the execution needs to be done promptly. Find the last recent low that showed a sign of strong support.
Draw an extended line from the last low and it should be giving you the idea of selling level. This extended level will mesh up with the EMA. The mesh up a level is the zone where you can set a limit order. But limit order is an advanced trading technique. People have to educate themselves about the proper place. The limit order should be placed with a minimum RR ratio of 1:3. If it is less than that, there is no chance you are going to earn money. Earning money is nothing but dealing with money management.
People who fail to keep things in the order are accusing the market of not working properly. Risk management or money management is the most critical part of trading. If you fail to do it properly, you shall not become successful. So prepare the mindset like an expert so that you can deal with the losses.
Managing the trades
Managing new trades is nothing but knowing new tactics to earn money. People who are not using the new tactics never know why trading is so popular. In the beginning, this system should be used with a 2% risk so that you can earn a significant amount of money. People who are increasing the risk above the 2% limit, should know about the PA pattern.
The PA pattern can improve your winning chance and give you a better grip on this industry. For the stop loss placement, there are many methods you can rely upon. Regardless of your technique, it should not be exceeding 50 pips. If it does, you do have some problems with the entry point. By ensuring precise entry, you can tighten the SL of each trade and this will give you an edge to improve the lot size. Scale the lot size according to market condition.
Assessing the market condition and syncing it with the Keltner channel strategy provides ease to investors. But it is an advanced technique that requires vigorous practice in the demo platform. Unless you can do that, you should be sticking to the guide. Those who are interested in modifying the strategy must backtest the new module in simulation software. The result should show a minimum 80% win rate or else ignore the new changes that you are looking to implement to this system.
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