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HomeForex MT5 IndicatorsKeltner Channel Smooth ATR Indicator

Keltner Channel Smooth ATR Indicator

Introduction to the Keltner Channel Smooth ATR Indicator

The Keltner Channel Smooth ATR Indicator is a volatility-based envelope that is aligned above and below a Moving Average, which is a central element of that indicator. In the settings of that Keltner Channel indicator, you can set the median value average method among the: Exponential Moving Average, Simple Moving Average, Smoothed Moving Average, and Linear Weighted Moving Average. Another feature of this forex indicator is the use of the smooth ATR. In other words, the Keltner Channel Smooth ATR indicator uses the smooth ATR to set the channel distance.

The Keltner Channel Smooth ATR Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

As you can see on the charts with the Keltner Channel Smooth ATR Indicator loaded, the area above central MA is green-colored, and below it is orange-colored. Please notice, that also channel bands are also colored, depending on the signal direction. Detailed instructions are provided below.

Buy Signal

Follow these steps for a long trade:

  • Price is above the central MA (green area)
  • Upper band color changes from orange to green
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the central MA
  • Take profit or exit trade whenever the price touches the central MA or use your own method of trade exit

Keltner Channel Smooth ATR Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

  • Price is below the central MA (orange area)
  • Lower band color changes from green to orange
  • Sell trade is triggered after the above conditions are met
  • Set stop loss a few pips above the central MA
  • Take profit or exit trade whenever the price touches the central MA or use your own method of trade exit

Keltner Channel Smooth ATR Indicator Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Keltner Channel Smooth ATR indicator in MT5?

Installation Guide

Download the Keltner Channel Smooth ATR.rar archive at the bottom of this post, unpack it, then copy and paste the Keltner Channel Smooth ATR.ex5 or Keltner Channel Smooth ATR.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL5 > Indicators (paste here).

Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Keltner Channel Smooth ATR indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex indicators to try.

Download Free Forex MT5 Keltner Channel Smooth ATR Indicator

To download the Keltner Channel Smooth ATR Indicator for Metatrader 5 (MT5) for free just click the button below:

Keltner Channel Smooth ATR Indicator Free Download

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