Keltner Scalping Trading System For MT4
Table Of Contents:
- Keltner Scalping Trading System For MT4
- Selecting the trading instrument
- Keltner Scalping Trading System For MT4 - Long trade setup
- Keltner Scalping Trading System For MT4 - Short trade setup
- Keltner Scalping Trading System For MT4 - Trade Management
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 Scalping Trading System For MT4 is mostly designed for intermediate and novice scalpers. But the efficiency of this scalping strategy is so high that many experts are using this strategy to make their trading system much easier. OHLC Bar Chart or Candlestick Chart, 89 Period SMA, Keltner Channels, MACD Histogram, 445 Period EMA, and Stochastic indicator is used to develop this strategy.
Some of you might get confused by seeing the long list of this indicator but you can take advantage of the template. By using the Keltner Scalping template, you will see the complete list of indicators nicely arranged in the chart.
Most of the traders have basic knowledge about the stochastic and MACD indicator. They become a bit confused while using the Kelner channel for the first time. The Keltner channel can be used just like the Bollinger band indicator. But this channel is uniquely designed so that you can take the reading from the 5 minutes or even in the 1-minute time frame.
The red signal line is known to act as the 445 EMA and the blue signal line is our 89 periods SMA. Both these signal lines work as an excellent support and resistance zone. While using the Keltner Scalping Trading System, the blue and the red moving average will act as the sweet spot for trading.
Selecting the trading instrument
The success of the trading system is mostly related to the selection of the asset. Novice traders never emphasize the selection process and eventually pick the asset which is in the most difficult state. But if you do the same while using the Keltner Scalping Trading System, you are not going to make any profit. We recommend the rookies to learn to use this system by trading the major asset. Once they become skilled at that, they can look for trading opportunities in GBPJPY, EURJPY, CHFJPY, and AUDJPY pair. However, special care should be taken since the spread of this exotic often exceeds 4 pips.
At times, the major currency pairs tend to exhibit ranging movement. In the absence of a definite trend in the market, we should not take the trades. However, some of the expert traders often scalp in the ranging market but they chose the 15 minute time frame. Try to take the trades in favor of the last prevailing trend as most of the breakout favors the existing trend. Now let’s see key steps that we need to follow to make a profit by using the Keltner Scalping Trading System indicator.
Keltner Scalping Trading System For MT4 - Long trade setup
We will discuss the long trade setups in a very simple way. Analyze the slope of the colored moving average. Moving average with periods 445 and 89 must have a positive slope and the price should trade above the 445 MA. Note that the blue and red colored moving average will act as an excellent support level. As the price touches the moving average, the bulls should push the price up to and form a nice bullish price action signals.
The position of the stochastic signal line must be below the 40 lines. This means the market is already in the oversold zone. Note that, the bullish rejection must take place at the support level of the Keltner channel. Finally check the MACD reading. To get the final confirmation, we need the grey bars on the positive side.
After analyzing the critical checklist for using the Keltner Scalping Trading System indicator we have to determine the lot size, SL, and Tp. In general, the lot size should be determined in such a way so that the risk factor doesn’t exceed 2% of your account balance. For the SL and TP, you can go for fixed 8 pips SL and 20 pips TP. But those who have strong knowledge about price action trading signals can use the low of the candles to determine the SL price. Usually, this should give them the unique opportunity to trade the high impact news.
Keltner Scalping Trading System For MT4 - Short trade setup
The long trade setup was discussed by using the simple principle. But now we will discuss the short trade signals by using a bit more advanced method. Draw the manual resistance level in the higher time frame and then move to the 5-minute chart. You should notice the red or the blue line will match with the drawn resistance line. Look for the rejection at the price. As you spot the rejection in the price, have a look at the slope of the red and blue MA. The slope must be negative which represents the overall trend for the asset is bearish. Note that the rejection level must match with the Keltner channel top boundary or else you have to discard the trade signals.
After you have identified the initial bearish trade setup, take confirmation from MACD and stochastic. The stochastic signal line must stay over the 60 marks. Finally move to the MACD indicator and wait for the grey bars on the negative side. The grey bars on the negative side represent the market is in a strong downtrend and you have a decent chance to win by taking the short trade. Set the SL to 8 pips and the TP will be 20 pips. But if you are good at analyzing SR level in the 5-minute chart, move the SL to break-even point once you are in 10 pips profit. And the new TP should be set to 30 pips.
Keltner Scalping Trading System For MT4 - Trade Management
The trade management technique for using the Keltner Scalping Trading System is a bit more different than the traditional scalping system. Those who have less experience in dealing with the lower time frame data can look for the trade signals by using fixed SL and TP. Under no circumstances the risk in each trade should exceed the 2% threshold. Once you gain confidence by using the Keltner Scalping Trading System, you can start using the trailing stops. This can significantly improve your profit factor and allow you to trade with a 1:3+ risk to reward ratio.
The traders need to pay special attention to their lot size while trading the volatile condition of the market. The volatility of the market increases when we have high-impact news releases. Unless you have strong skills to analyze the news data, you should avoid taking the trades before the news release. However, those who have extensive skills in determining the price action signals can trade major news by using the fundamental analysis and the key steps of the Keltner Scalping Trading System.
Making consistent profit requires strong control over emotions. Failing to follow the sequential steps mentioned in this article, will push you in a very condition. Some of you might start ignoring one or two key steps mentioned in the Keltner Scalping Trading System but by doing so, they are reducing the efficiency of the trading system significantly. As a rookie trader, start using the strategy in the demo environment. The demo environment will provide the perfect environment to learn the INS and OUT of this trading strategy. Once you become experienced by trading in the demo account, move to the real trading account.
Taking trades in a real trading account is a bit difficult than trading in the demo environment. You will be under heavy pressure since you don’t any clue about the outcome of any trade. But this should not bother you since no one can determine the market direction. Since the results from each trade are unknown, you must be mentally prepared to accept the losses. Try to take the trades with the mindset that you may have to face a losing order. By doing so, you will be always cautious while using the Keltner Scalping Trading System.
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