Keltner channel indicator.

Another version of a trend channel based on the Moving Average; it serves as the main reference point for constructing two additional lines.

The width of the channel directly depends on the average price for the time period in which it was created, this makes it possible to better take into account market volatility in Forex trading.

The script is based on the Keltner technique, developed back in 1960, and has been successfully used for more than 50 years, which allows us to assert its effectiveness.

Download the Keltner Channel indicator.

As soon as you have installed the indicator and launched it, a three-band channel appears on the chart, including a moving average and support and resistance lines.

The support and resistance lines are highlighted in red, and the moving line is dotted in blue.

The visual display can be easily changed in the settings. Settings.

MA_Period – the value of the periods involved in the calculations; the larger the value, the smoother the Keltner channel will be.

Mode_MA is a variant of the Moving Average, the default is set to 0, it is better to use it.

Price_Type – an indicator of a typical price, can be changed in the range from 3 to 5.

Display – if desired, you can easily change the colors and thickness of the channel lines.

Trading with the Keltner Channel.

The simplest option for trading using this indicator is to follow the trend.

Buy – if the price is at the lower border of the channel and sharply begins to go up.

Sell ​​– if the price has pushed off from the upper border and is confidently moving downwards.

In this case, the maximum and minimum price values ​​in past time periods are taken into account.