Keltner ATR Bands Indicator
Platform: MT4 Type: Channel Last update: August 2, 2024The Keltner ATR Bands Indicator for MT4 is a forex trading indicator that measures the highs and lows of the recent price range and forecasts the length of upcoming market momentums. It displays the price channel reflecting a possible range of the price movements so that forex traders can set a target of their potential profit targets. The Keltner ATR Bands also helps to avoid bad trades or trades offering less margin than your potential loss. You will get the best results trading with the Keltner ATR Bands during sideways market conditions.
How does it work? How to apply in trading?
The Keltner ATR Bands applies a combination of a 50-day period Keltner MA and ATR (3.75 multiplied factor) in order to predict the future market ranges. The indicator has been effective because it has been proved that price often respects the areas outlined by the indicator as short-term support/resistances. In other words, there is a high probability that the price will react at the touch of the upper or lower Keltner ATR Band. These levels often turnouts as solid swing areas of the market.
Buy Signal
Follow these steps for a long trade:
- Price hits the lower Keltner ATR Band
- A bullish price action takes place
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the price reaches upper Keltner ATR Band
Sell Signal
Follow these steps for a short trade:
- Price hits the upper Keltner ATR Band
- A bearish price action takes place
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last high point of the market
- Take profit or exit trade whenever the price reaches lower Keltner ATR Band