Keltner Channel Intraday Strategy For MT4
Table Of Contents:
- Keltner Channel Intraday Strategy For MT4
- The Keltner Channel Intraday Strategy For MT4 – Long positions
- The Keltner Channel Intraday Strategy For MT4 – Short positions
- Is the Keltner Channel Intraday Strategy For MT4 profitable?
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 Channel Intraday Strategy For MT4, is it trading system that makes use of the Keltner channel. the Keltner channel is one of the most widely used price channel indicators. Quite often it is used in conjunction with other channel indicators such as Bollinger bands. The Keltner channel indicator is an intraday trading strategy.
There are only three indicators that are used in this trading system. Obviously, the first indicator is the Keltner channel indicator. This is a somewhat modified version of the regular Keltner channel that you see. The price bands here are quite narrow. Therefore, traders need to keep a close eye on the price trends.
You will also notice that there are two other moving average type indicators which trade closely. These additional indicators somehow tend to clutter the price charts. So, traders need to develop an eye for spotting the long and short positions when using the Keltner channel indicator strategy.
The price chart, there is also the regular pivots indicator. These pivot indicators can serve the purpose of acting as potential take profit levels as well as entry for your trades. It is up to the trader on whether or not they want to use the pivots indicator. If you do not find the need of using this indicator, then you can simply remove it. It does not impact the trading strategy in any way.
In the first sub window of the Keltner channel indicator strategy, we have the deep bar indicator. The deep bar indicator is one of the most commonly used indicators especially when building custom trading systems. Not much is known about this trading indicator. However, what you can see and one that is obvious is the fact that depending on the price trends, the deep bar indicator can change colors.
Let's now take a look at how you can use these indicators to trade with the Keltner channel intraday trading strategy.
The Keltner Channel Intraday Strategy For MT4 – Long positions
For long positions using the Keltner channel intraday strategy, we need to wait for evidence of price to be in an uptrend. Ideally, you should wait for price to break the upper boundary of the Keltner channel. When this happens, you should look to the deep bar indicator. This indicator should now be changing from red to blue.
When this happens, you will also notice that a blue star is pointed below the price. You can take a long position after this candlestick closes just above the high. Set your stop loss to the most recent swing low that formed. For your take profit levels, you can either make use of the intraday pivot levels or you can calculate a fixed risk to reward ratio and set your take profit level accordingly.
When using the second method of setting your take profit levels it is important that you monitor your trades. This means that you should move your stop loss to break even when price moves at least 50% in your favor. Alternately, keep an eye out on the deep bar indicator. If this indicator changes color, then we recommend that you start reducing your positions.
The Keltner Channel Intraday Strategy For MT4 – Short positions
For short positions using the Keltner channel intraday strategy, we need to wait for evidence of price to be in a down trend. Ideally, you should wait for price to break the lower boundary of the Keltner channel. When this happens, you should look to the deep bar indicator. This indicator should now be changing from blue to red.
When this happens, you will also notice that a yellow star is pointed above the price. You can take a short position after this candlestick closes just below the low. Set your stop loss to the most recent swing high that formed. For your take profit levels, you can either make use of the intraday pivot levels or you can calculate a fixed risk to reward ratio and set your take profit level accordingly.
When using the second method of setting your take profit levels it is important that you monitor your trades. This means that you should move your stop loss to break even when price moves at least 50% in your favor. Alternately, keep an eye out on the deep bar indicator. If this indicator changes color, then we recommend that you start reducing your positions.
Is the Keltner Channel Intraday Strategy For MT4 profitable?
In conclusion, the Keltner channel intraday strategy is a fairly decent trading system. Beginners can also experiment in trading with this strategy. But we should warn that beginners should use this trading strategy on a demo trading account first in order to understand the various signals. The charts can be a bit cluttered due to the choice of indicators and the alert systems that are used. However, this should not be much of an issue.
The trading template that comes with the Keltner channel intraday strategy is relatively lightweight. Therefore, you can use this trading template to monitor multiple instruments at the same time. However, given that the Keltner channel intraday strategy is a short term system, you should not use too many instruments to trade at the same time. This can lead to mistakes that can be easily avoided and can lead to you losing your trading capital.
Although the name suggests that the Keltner channel intraday strategy is used for the short term charts you can also apply this trading system on higher chart timeframes. Ideally the one hour chart timeframe is perfectly suited with the set of indicators used in this trading strategy. the only thing to bear in mind is that the holding period for your trades can be much longer.
Overall, the Keltner channel intraday strategy is a fairly decent trading system but do not expect to make huge profits from this trading strategy. If you have a better trading strategy, then you can certainly avoid using this one.
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