Keltner Channel with Stochastic and Bollinger Bands Scalping System For MT4
Table Of Contents:
- Keltner Channel with Stochastic and Bollinger Bands Scalping System For MT4
- The Keltner Channel Stochastic Bollinger Bands forex trading strategy – Long positions
- The Keltner Channel Stochastic Bollinger Bands forex trading strategy – Short positions
- Is the Keltner Channel Stochastic Bollinger Bands forex trading strategy good for you?
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 with Stochastic and Bollinger Bands Scalping System For MT4 is a system that makes use of the mentioned indicators. We really like this trading strategy for the simple reason that it is very easy to use and does not require too many indicators to validate upon.
As the name suggests, there are three indicators that in play. These include the Keltner channel which sits on the price chart. Then we have the stochastics oscillator and the Bollinger bands indicator on the stochastics oscillator. In a way, the unique set up of the indicators shows the market information quite differently.
Therefore, it is quite unique and also a pleasure to trade with the Keltner Channel Stochastic Bollinger Bands forex trading strategy. The charts are very clean and the trading system rules are so simple. This is why the Keltner Channel Stochastic Bollinger Bands forex trading strategy can be used even by beginners in forex trading. There is also scope for this to turn into an automated trading system as well. But we will leave the more advanced concepts for another article.
Let's take a look at each of the indicators in the Keltner Channel Stochastic Bollinger Bands forex trading strategy and how they display the market information. Firstly, we have the Keltner channel. This indicator is plotted on the price chart.
It uses the setting of 10 period which is one of the defaults. The Keltner channel displays the market trend easily. When the trends are strong, you will see price trading above the Keltner channel. Likewise, when the trend is to the downside, you will see price trading below the Keltner channel.
We then have two indicators combined into one in the sub window. Firstly, we have the Stochastics oscillator. The Stochastics oscillator, as you know plots the price momentum. The settings for the Stochastics oscillator in the Keltner Channel Stochastic Bollinger Bands forex trading strategy is a 28 period with a slowing of 5 and a %D of 3.
This makes the Stochastics indicator very smoothed. Interestingly though, we only use the main or the %K line of the Stochastics oscillator. We then have a moving average of the type simple moving average. This moving average is a 10 period moving average which is based on the Stochastics indicator's values. Therefore, it displays the average trend of 10 periods of the Stochastics oscillator quite easily.
Finally, we have the Bollinger band. The Bollinger band uses a 10 period setting with just one standard deviation. The Bollinger band however uses the Stochastics indicator's values as its base settings.
So, in the sub window of the Keltner Channel Stochastic Bollinger Bands forex trading strategy, you have an interesting combination of indicators that focus on the Stochastics oscillator. Let's now take a look at how you can trade long and short positions using the Keltner Channel Stochastic Bollinger Bands forex trading strategy.
The Keltner Channel Stochastic Bollinger Bands forex trading strategy – Long positions
For long positions in the Keltner Channel Stochastic Bollinger Bands forex trading strategy, we need to look for the Keltner channel to be trading below the price. It should also be sloping up. Once you see this set up, then look to the indicators in the sub window.
In the sub window, you should then see the stochastics oscillator trading above the moving average indicator and also outside of the Bollinger bands. The slope of all the indicators should also be sloping upward.
When the sub window indicators also are bullish, you should then take a long position in the market. Set your stop loss to the low below the Keltner channel. For take profit, use an appropriate fixed risk to reward set up. This should ideally be a one is to three set up.
When price moves at least a part in the direction of the price, you should then move your stop loss to break even and let the reminder of the trade to continue in the direction of the trend.
The Keltner Channel Stochastic Bollinger Bands forex trading strategy – Short positions
For short positions in the Keltner Channel Stochastic Bollinger Bands forex trading strategy, we need to look for the Keltner channel to be trading above the price. It should also be sloping lower. Once you see this set up, then look to the indicators in the sub window.
In the sub window, you should then see the stochastics oscillator trading below the moving average indicator and also outside of the Bollinger bands. The slope of all the indicators should also be sloping downward.
When the sub window indicators also are bearish, you should then take a short position in the market. Set your stop loss to the high above the Keltner channel. For take profit, use an appropriate fixed risk to reward set up. This should ideally be a one is to three set up.
When price moves at least a part in the direction of the price, you should then move your stop loss to break even and let the reminder of the trade to continue in the direction of the trend.
Is the Keltner Channel Stochastic Bollinger Bands forex trading strategy good for you?
In conclusion, the Keltner Channel Stochastic Bollinger Bands forex trading strategy is a very unique trading system. Despite its uniqueness, it is very simple to understand which makes it ideal trading system for even beginners to trading. The price charts are very clean, meaning that you can actually make sense of the market information.
The Keltner Channel Stochastic Bollinger Bands forex trading strategy is a trend following system. Therefore, it tends to work best when the markets are trending. Therefore, traders should be aware of any ranging market conditions as you will be prone to false trading signals.
The Keltner Channel Stochastic Bollinger Bands forex trading strategy is not confined to any particular time frame. As a result, both day traders and swing traders can easily make use of the Keltner Channel Stochastic Bollinger Bands forex trading strategy. The template is light weight, you can use this template to monitor multiple instruments.
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