Simple keltner channel trading strategy

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