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Keltner Channel Indicator

Keltner Channel Indicator

Keltner Channels is a classic trend indicator created by Chester Keltner back in 1960. Keltner Channels are superficially similar to Bollinger and Envelopes. The advantage of any channel is to facilitate the perception of price movements.

Thanks to the channel, the trader can determine the trend direction and good places to enter the market at a glance. The Keltner Channel is no exception; it looks wide or narrow depending on the speed of price movement. In a fast trend with short corrections, a narrow channel will promptly suggest a trade entry point. And in a slow trend with wide corrections, a wide channel will keep the deposit from unnecessary losses before a good market entry point appears. We also recommend reading Coppock Curve Indicator.

Indicator application

The Keltner channels indicator well marks the range of price movement and therefore you can work in it relying on the channel boundaries. In case of a downward movement, you should pay attention to the upper border of the channel; when the price touches the upper border, we sell.

In the case of an upward movement, you need to pay attention to the lower border of the channel; when touching the lower border, we buy. This tactic of using the channel is simple, but effective only on large timeframes from daily and higher.