simple keltner channel trading strategy
TRANSCRIPT
PRICE FIRST
INDICATOR SECOND
Designed to surround the
general price action of the
charted instrument
This is the time when you
want to be on alert for
potential trading
opportunities
THE BANDS DO NOT ACT AS
A PHYSICAL BARRIER TO
PRICE JUST AS MOVING
AVERAGES DO NOT
MAGICALLY SUPPORT PRICE
The moving average can
also act as a landing zone
KELTNER CHANNEL
SETTINGS
Moving average length (will determine lag time
of channel)
Average true range (ATR)
Band multiplier (uses ATR reading)
Moving average type (EMA, SMA)
ATR type (EMA, SMA)
The band multiplier is a
very important number
This may be suitable for
those scalping with the
Keltner channel
Some traders utilize the
Bollinger bands and the
Keltner channel together
20 period EMA
20 period ATR
2.25 multiplier
Trading pullbacks is best
done in a market that has
exhibited a strong push in
a direction.
We can use travel outside the
bands as an indication there was
conviction in the swing.
Remember, an excursion outside
of the channel indicates an
extreme from what was a
considered normal price action.
No Pullback
CONFLUENCE AND
TRADE TRIGGERS
We need a trigger to get into
the trade and there are many
tools that you can use.
The trigger chart is only
used for exactly what the
name implies.
100%
Stop
TRADE TARGETS
Fibonacci Targets
We are going to take the
move into the extreme of
our pullback and project
forward in time to a
potential price target.
So many numbers…..
I only use a few
To keep things objective……
Bottom of structure for entry price
Stop price when low breached
Target price
This Keltner channel
trading system is not
complicated
Keltner provides
other opportunities