Keltner Channel indicator: volatility based channel for MT5
Keltner Channel trading indicator for the MetaTrader 5 terminal - another channel indicator.
The indicator displays on the price chart of the currency pair Keltner channel, a classic technical analysis indicator developed by Chester Keltner in 1960. Bollinger Bands и “Конверты”.
Он использует три линии графика: средняя линия — это 10-дневная простая скользящая средняя по “типичным” ((high + low + close) / 3) ценам, верхняя и нижняя линии получаются методом прибавления и вычитания скользящей средней дневного диапазона цены (разница Максимума и Минимума) из средней линии. Таким образом, строится канал, основанный на волатильности.
Input parameters:
- MA_Period (default = 10) - the period of the moving average (midline).
- Mode_MA (default = MODE_SMA) - type of moving average (average line).
- Price_Type (default = PRICE_TYPICAL) - price type for the moving average (midline).
The classic strategy for this indicator is to buy when closing above the upper line and sell when closing below the lower line. It seems that this entry strategy is justified enough. Exits can be applied on a very conservative stop loss - False signals are not uncommon, by a sufficiently high take profit and by crossing the price with the middle line.
Experts ForTrader.org magazine recommend using other indicators to confirm signals.