Keltner Channel Color Indicator
Platform: MT4 Type: Channel Last update: September 25, 2024The Keltner Channel Color Indicator for MT4 is a variation of the well-known Keltner Channel, but this gauge displays a colorful channel that reminds a cloud. It’s pretty easy to use because the color of the channel suggests the direction of a trade.
Anatomy of the Keltner Channel Color Indicator
As the name suggests, the Keltner Channel Color Indicator provides a channel a bit in the form of a trend-following cloud. Simply speaking, a green color indicates bullish market movement, and conversely, an orange color suggests bearish movement. There is another important element, namely a dark moving average line – you should only look for long trades when the price is above it, and only for short trades when the price is below it.
Buy Signal
Follow these steps for a long trade:
- The color of the channel changes from orange to green
- The price is above the dark MA
- Buy trade is now triggered
- Set stop loss a few pips below the most recent market low point
- Take profit when channel changes color again or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- The color of the channel changes from green to orange
- The price is below the dark MA
- Sell trade is now triggered
- Set stop loss a few pips above the most recent market high point
- Take profit when channel changes color again or use your own method of trade exit
