Keltner Channels are a powerful tool for technical traders seeking to identify trends, volatility, and potential reversal points. Built around an exponential moving average (EMA) and incorporating the Average True Range (ATR), Keltner Channels form an upper and lower band that dynamically adjusts to market volatility. This makes them particularly useful for spotting breakouts and trend continuations.
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When price breaks above the upper band, it can indicate bullish strength and a potential buying opportunity. Conversely, a break below the lower band might signal bearish momentum and a possible shorting setup.
Unlike Bollinger Bands, which use standard deviation, Keltner Channels' reliance on ATR offers a smoother and more consistent reaction to price changes. This allows traders to better gauge the strength of a move without overreacting to market noise. In a trending market, prices tend to "ride" the outer bands, suggesting momentum continuation. However, in a consolidating market, prices frequently revert back to the EMA centerline, providing mean reversion opportunities for savvy traders.
To maximize effectiveness, traders often combine Keltner Channels with other indicators like RSI or MACD for confirmation. For instance, if price breaks above the upper Keltner Channel and the RSI is not in overbought territory, it may confirm a strong upward breakout. On the other hand, if price hits the upper band but momentum indicators show weakness, a reversal could be imminent. This layered approach helps traders avoid false signals and enhances risk management in both trending and sideways markets.
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Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument.
00:00If you learn to use this strategy of pocket option, then it can help you a lot in making profits. Because I find the win ratio of this strategy quite good, and there are only three to four patterns in this strategy, you just have to place the trade on that pattern.
00:18And your win ratio can increase rapidly, the strategy is very simple, just understand how to use it once, there is no need to add many indicators to it. With just one indicator, you can make huge profits.
00:31So first of all set the timing of the candle to 10 seconds, there are two more best time frames for this strategy, but we will discuss them in the next video if needed, and set the expiry timing to 30 seconds, now this has become a good combination.
00:49After that go to the settings of the indicators, and add the Keltner channel. In this indicator, you have to place entry on only a few patterns. Then go to the indicator settings. And set the multiplier to 3. And after this we will make some changes in the color settings as well.
01:08And then save it. So we have added all the functions here, now first of all let us understand the strategy in brief, and then we will try to make profits by placing entries on it.
01:21So out of the 3 patterns, I have found 1 pattern in this chart. In this chart, we could have placed entry many times, like here the market is moving between the upper line, and the middle line.
01:35And when do we know that the uptrend has started in the market, so we get to know from here, because here the market tried to go down twice but it failed. This means that the uptrend movement in the market is strong, so now we could have placed entry here, here, here, and here also. And our entry would have won easily.
01:54And this is the second pattern, here the market is moving in the downtrend. Here the market comes to the middle line, and moves in the downward direction. So the downtrend started from here. Because here the market had become sideways, this means that here the direction of the market was not being decided, but then here due to more sellers coming in the market, the market started falling down.
02:21It broke this bracket. And the downtrend started rapidly. So in this chart, when the market again comes to this middle line, and starts going down by forming a red candle, then we could have placed an entry, and our entry would have won easily twice.
02:37And this is the third pattern. Here the market moves from the upper line, and then moves from the lower line to the upper line, and now again the market is going towards the lower line from here, in such a chart the market breaks the middle line and goes down.
02:55So we have seen all three patterns, now we will try to make some profits from these three patterns.
03:01So here the market moves from the lower line to the upper line. And then it moves from the upper line to the lower line, so it is moving sideways. So now we will wait a little, and let the market come well on the upper line of the Keltner channel.
03:18And when the market starts moving down from the upper line by making a good red candle, we will place the entry in the downward direction. So here the market is moving in the downward direction from the upper line.
03:31So we have placed the entry here in the downward direction.
03:35And there are only a few seconds left for the expiry time.
03:45And that's great, our entry has won.
03:52So here the overall movement of the market is in downtrend. But the market goes a little above the middle line every time. And then goes down again. So we will place the entry at the right place.
04:05So here while changing currency, the expiry timing was mistakenly set to one minute.
04:15While placing an entry, you should know which pattern is going on in the chart, this increases the winning ratio.
04:23And that's great, this entry of ours has also won easily. And you should see every entry, so that when you use it, you can easily find the entry place.
04:36So this chart is also moving in an overall downtrend. And many times the market has gone below the middle line, and this time also the market has started going below the middle line. That is why I have placed the entry in the downward direction.
04:51And in just a few seconds, our entry is going to win.
04:54So this chart was also simple, here also the entry was easily won.
05:02So this time also the overall downtrend is going on in the market. And here the market could not reach the upper line, which means there is a strong movement in the downtrend, and this time also the market came a little above the middle line, and started going down.
05:24So here there was a slight reversal in the market, and during that time our entry lost. But I have placed five entries here again, because the chart shows a high probability of the market going down.
05:42And that's great, we have won this entry. And our loss has been recovered and, a good profit has been made.
05:51So here the market direction is in uptrend, and the market sometimes goes above the middle line, and sometimes it comes down to the lower line and again shows uptrend movement.
06:06So this time also the market is coming down to the lower line, and again going in the upward direction, and it has broken out the middle line. So now there can be a strong movement in the uptrend.
06:18And here we did the analysis in a very accurate way. And we did the analysis in a very simple way and placed the entry, and after placing the entry, the market went up rapidly, and our entry won easily.
06:40So in this chart we will have to wait a little, because after looking at the overall chart, it seems that the market is moving sideways, but here the market is going above the middle line.
06:57So it is not sure yet whether it will move in uptrend or downtrend, that is why it will be necessary to wait a little.
07:10So finally the market has broken the middle line and has indicated in the downward direction, so I have placed the entry in the downward direction.
07:23And that's great, we have won this entry here as well. I get a very good win ratio with this strategy, but along with this I also have to pay attention to support and resistance, because their role is also very important.
07:36So I hope you will like this strategy very much, so see you in the next strategy.
