Keltner Channels Reversal Scalping System For MT4
Table Of Contents:
- Keltner Channels Reversal Scalping System For MT4
- Keltner channel reversal forex trading strategy – Long positions
- Keltner channel reversal forex trading strategy – Short positions
- Is the Keltner channel reversal 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 Channels Reversal Scalping System For MT4 is a rather unique trading system. It is not only simple but also looks quite promising when you visually backtest this trading strategy. As the name suggests, the Keltner channel reversal forex trading strategy makes use of the Keltner channel as the primary indicator.
However, besides the Keltner channel, the main trading decisions are derived from the Luckystar indicator. This indicator is a custom made indicator and it plots the buy and sell signals rather differently.
Firstly, the Keltner channel makes use of the default setting of 10 periods. The Keltner channels belong to the channel or envelope family of indicators. It plots two lines, upper and lower on the price chart. The Keltner channel also depicts the trends in the markets and can therefore be used as a trend detection indicator as well.
In the sub window, we have the Luckystar indicator. Not much is known about how this indicator works. However, it simply plots the buy and sell signals in a rather interesting way. You can look at the chart above to see how it plots the red and green histogram with a little star on top. These are nothing but multiple buy and sell signals. Due to the fact that the Lucky star indicator is prone to such false signals, we make use of the Keltner channel reversal forex trading strategy in order to filter out the false signals.
This trading system is best used on a 15 minute chart. But if you want to experiment, you could also use this trading system on one hour chart time frames as well. Looking at the templates and the rules of buy and sell, it is clear that for this trading system to work, you need to have a good trending market. When the markets are choppy, the Keltner channel reversal forex trading strategy is prone to false signals.
This also means that you will get to see a lot of losing trades as well. Therefore, traders need to be careful when trading with the Keltner channel reversal forex trading strategy. But despite this shortcoming, as you will see in this article, the Keltner channel reversal forex trading strategy is a rather robust forex trading system that you can use.
Let’s now take a look at how you can trade with the Keltner channel reversal forex trading strategy.
Keltner channel reversal forex trading strategy – Long positions
Take a long position using the Keltner channel reversal forex trading strategy when you see the buy signal that emerges from the Lucky star indicator. Following this, ensure that the Keltner channel is indicating to a move higher. This suggests that the uptrend is building up.
At this time, you want to see price trading inside the Keltner channel. Once you see a candlestick that pops out of the Keltner channel, wait for that candlestick to close. Then open a long position at the start of the next candlestick.
You can set your stop loss to the recent low that formed prior to taking the long position. Alternately just set your stop loss to the lower end of the Keltner channel. Be sure to move the price a few pips away from the lower Keltner channel.
For take profit, you can choose to trade with a fixed risk to reward set up. Alternately, when the trends are good, we recommend that you trail your stop loss along the lower end of the Keltner channel. This will ensure that you are able to lock in the profits during times when the trends are strong.
Keltner channel reversal forex trading strategy – Short positions
Take a short position using the Keltner channel reversal forex trading strategy when you see the sell signal that emerges from the Lucky star indicator. Following this, ensure that the Keltner channel is indicating to a move lower. This suggests that the down trend is building up.
At this time, you want to see price trading inside the Keltner channel. Once you see a candlestick that pops out of the Keltner channel, wait for that candlestick to close. Then open a short position at the start of the next candlestick.
You can set your stop loss to the recent high that formed prior to taking the short position. Alternately just set your stop loss to the upper end of the Keltner channel. Be sure to move the price a few pips away from the lower Keltner channel.
For take profit, you can choose to trade with a fixed risk to reward set up. Alternately, when the trends are good, we recommend that you trail your stop loss along the upper end of the Keltner channel. This will ensure that you are able to lock in the profits during times when the trends are strong.
Is the Keltner channel reversal forex trading strategy good for you?
In conclusion, the Keltner channel reversal forex trading strategy is a very simple trading system. We highly recommend this trading system especially for beginners. Bear in mind that due to the nature of the indicator, you will get to see a lot of false signals. Therefore, traders need to resist the temptation of overtrading. Overtrading can lead to big losses and you could end up giving back all the profits you made.
The Keltner channel reversal forex trading strategy is ideal on trending markets. Therefore, besides some trending currency pairs, we recommend using the Keltner channel reversal forex trading strategy on commodity markets as well. This enables you to capture the trends rather nicely and be able to make a decent profit.
The Keltner channel reversal forex trading strategy is also suitable for professional traders as well as long term swing traders as well. There is not much of a difference in the performance of using this trading system on long term charts. However, as we mentioned, trends are very important for the success of using the Keltner channel reversal forex trading strategy. All in all, the Keltner channel reversal forex trading strategy is a very good forex trading system that you should give it a try.
Download the complete system description and the files here:
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