Trading with Keltner Channels offers a dynamic approach to analyzing market trends, volatility, and potential breakout opportunities. These channels are composed of an Exponential Moving Average (EMA) surrounded by upper and lower bands, typically set a multiple of the Average True Range (ATR).
Open Free $50K Demo Account: https://pocketoptioncapital.com
The centerline EMA helps define the trend direction, while the bands adjust automatically to market volatility, making the Keltner Channel a versatile tool in both trending and ranging markets. When the price stays above the upper band, it can indicate strong bullish momentum, while trading below the lower band may suggest bearish control.
One of the core strengths of the Keltner Channel is its use in breakout trading strategies. Since the bands expand and contract with volatility, a breakout above the upper band after a period of contraction can be a signal of an impending uptrend. Traders often look for volume confirmation and bullish candlestick patterns to validate such breakouts. Similarly, a breakdown below the lower band can signal a potential bearish move, especially when confirmed by high selling volume and a strong downside candle. Unlike Bollinger Bands, which use standard deviation, the Keltner Channel's reliance on ATR helps reduce false signals in highly volatile environments.
Keltner Channels can also be used for mean reversion strategies when markets are in a range. In such conditions, traders often anticipate price retracements toward the EMA after touching the outer bands. This allows for high-probability countertrend entries, especially when supported by overbought or oversold signals from indicators like RSI or Stochastic. However, it's essential to confirm the absence of a strong trend before applying mean reversion tactics, as blindly fading momentum in trending markets can be costly. With proper context and confirmation, Keltner Channels offer traders a powerful blend of volatility awareness and trend-following insight.
Open Free $50K Demo Account: https://pocketoptioncapital.com
Money Management: It is important to follow up with this strict rule of investment: If you have $100 in your account, each open position should be $5 tops If you have $200 in your account, each open position should be $10 tops If you have $500 in your account, each open position should be $25 tops If you have $1,000 in your account, each open position should be $50 tops If you have $2,000 in your account, each open position should be $100 tops If you have $5,000 in your account, each open position should be $250 tops
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
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.
00:00How do we make huge profits by using the Keltner channel correctly?
00:15If you also want to know then this video can be very helpful to you.
00:19And even new traders can use it very easily.
00:22So there are some tricks in it which are important to understand.
00:25So watch the video carefully.
00:27So first of all we add the settings of today's strategy.
00:30So first of all go to the indicator settings.
00:33And add the Keltner channel.
00:35And then go to the Keltner channel settings and set the multiplier to 2.
00:39Now we will also change the color settings.
00:42So we will make the color of the top line sky blue.
00:45And the middle line white.
00:47And after that we will set the bottom line to sky blue as well.
00:51And the background color blue is good.
00:53Then save it.
00:54So today we will try to make as much profit as possible with the help of just this one indicator.
01:00And now we will also change the settings of the candle.
01:03So here set the candle timing to 30 seconds.
01:06And save the expiry timing to 1 minute.
01:09And today we will make the trade amount $250.
01:13And here all the settings are completed.
01:16So first of all keep one thing in mind that while using Keltner channel.
01:21You have to do analysis in a very simple way.
01:24If you keep doing too much analysis then you will miss entry point.
01:28So here the market is moving in an uptrend.
01:30And here the market is moving in the upward direction while moving between the upper line and the middle line.
01:36And now the market has come to the middle line.
01:39And now it has formed a green candle.
01:41This means that it is preparing to go above the middle line again.
01:45So we will place entries in the upward direction here.
01:48So here the market started moving above the middle line by forming a green candle.
01:53Hence I have placed an entry here in the upward direction.
02:05And it is very good that our first entry has one.
02:10So just like in the previous chart we placed entry in the uptrend direction.
02:15Now the same chart is moving in downtrend.
02:17As there is downtrend in the market.
02:19And after the market comes near the middle line.
02:22It again starts moving in the downward direction.
02:25So this time also the market is making a red candle after coming near the middle line.
02:30It means that now the market is preparing to go down from here.
02:33So we will place 2 trades here in the downward direction.
02:38So I have placed 2 trades here in the downward direction.
02:43If you place the trade in the same way as we tell you on the Keltner channel.
02:47Then your chances of making profit will be very high.
02:50Because these 3 to 4 methods are very simple methods.
02:56And our second entry here also won easily.
03:02So here this chart is completely different from the first 2 charts.
03:06Here the uptrend was going on in the chart but now the market movement is changing.
03:11So we will wait for the right entry point here.
03:18So here the market has broken down the previous support.
03:22And now all the 3 lines of the Keltner channel are also moving in the downward direction.
03:27So now there is a high possibility of the market going down.
03:37So here too our entry has won very easily.
03:42So as I told you in the first entry, here is the same chart.
03:47The market is moving in the upward direction while also moving around the upper and middle lines of the Keltner channel.
03:53And now a good entry point is visible in the market, but now the red candle is moving here.
03:59When the green candle starts, we will get a confirmation on the upside and then we will place the entry.
04:09So after seeing the green candle here, I placed an entry in the upward direction.
04:24And that's great, the entry here has won.
04:27And all the entries we have placed so far have won.
04:30There are 3 to 4 types of entry placements while using the Keltner channel.
04:35If you place the entry in the same way, you can still make a very good profit.
04:39And perhaps all those types can be covered in this video.
04:44So the market trend changed here, as the market was moving in a downtrend while moving between the middle line and the lower line.
04:53But now the trend has changed again from here, as the market has gone up by making big green candles from the lower line, and breaking out the middle line as well.
05:02And when it started going down again, it could not go below the middle line.
05:07The market has gone above the middle line.
05:09And now it can probably move up while moving between the middle line and the upper line.
05:14And if we look a little more carefully, we come to know that the market has broken out of this resistance.
05:19So, there are more chances of the market moving in the upward direction from here.
05:26So here I have placed a double entry in the upward direction.
05:36So you can see that after placing the entry the market moved up rapidly and our entry won easily, and every entry we have placed so far has won.
05:49So the downtrend has started in the market from here, and after the downtrend starts, the market comes near the middle line and goes down again.
05:57And this time also the market is showing the same movement.
06:00So we will place the entry here in the downward direction.
06:18Here the market is in an upward trend.
06:22And here its attempt to break the middle line has failed.
06:25This means that buyers are looking stronger in the market.
06:28That is why we have placed an entry in the upward direction here.
06:40And here our entry has won.
06:42The strategy works well, you just need to pay attention to the support and resistance.
06:47And I would like to tell you that I place all the trades on proper analysis.
