Keltner Channel Indicator

Elliott Wave Count

Are you having trouble understanding what the current market trend is? You’ve probably heard the phrase “always trade with the trend” a few times, but you’re not sure if the market is in an uptrend or downtrend.

Keltna Channel Indicator on MT4
The Keltner Channel indicator consists of three bands that are part of the MT4 platform, two of which act as the lower and upper limits. The third band is between the other two lines. Depending on the settings used to calculate this indicator, the price tends to move between the bands.

There are many benefits to using this indicator.

One of the main uses of the Keltna Channel is to determine the market trend. The Keltna Channel can be used to determine the trend of the market. If the channel turns up, this indicates an uptrend. When it turns down, this indicates a downward trend.

The Keltner Channel can not only detect significant trends in a short period of time, but it can also be used to detect true possible trends that may reverse.

The Keltner Channel has a number of rival indicators that do most of its work. The closest rival can be found in the Bollinger Bands. Bollinger Bands indicator.

However, the advantage of this Keltner Channel over other indicators is its calculation formula. Because of its formula, this indicator does not react too strongly to market fluctuations when it is set to its default settings. This causes the indicator to be more resistant to false breakouts. Traders can modify the settings so that the channel reacts faster or slower to market fluctuations.

How to trade with the Keltner Channel indicator
Although the indicator is available to more sophisticated traders, the strategies for trading with the indicator are as follows.

The way an uptrend works is whether the price is restricted to the upper half of the channel. Sometimes, prices bounce back and forth between the upper and middle bands.

In a downtrend, the market confines itself to the lower half of the channel. Similar to an uptrend, prices may bounce back and forth in the lower and middle bands until the trend ends.