Our custom developed Forex Keltner Channel Python Indicator. Keltner Channel is a volatility based technical indicator composed of three separate lines. The middle line is an exponential moving average (EMA) of the price. Additional lines are placed above and below the EMA. The upper band is typically set two times the Average True Range (ATR) above the EMA, and lower band is typically set two times the ATR below the EMA. The bands expand and contract as volatility (measured by ATR) expands and contracts.
Since most price action will be encompassed within the upper and lower bands (the channel), moves outside the channel can signal trend changes or an acceleration of the trend. The direction of the channel, such as up, down, or sideways, can also aid in identifying the trend direction of the asset.
- The EMA of a Keltner Channel is typically 20 periods, although this can be adjusted if desired.
- The upper and lower bands are typically set two times the ATR above and below the EMA, although the multiplier can also be adjusted based on personal preference. A larger multiplier will result in a wider channel.
- Price reaching the upper band is bullish, while reaching the lower band is bearish. Reaching a band may indicate a continued trend in that direction.
- The angle of the channel also aids in identifying the trend direction. When the channel is angled upwards, the price is rising. When the channel is angled downward the price is falling. If the channel is moving sideways, the price has been as well.
- The price may also oscillate between the upper and lower bands. When this happens, the upper band is viewed as resistance and the lower band is support.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex Keltner Channel Python Indicator in action.
Copy and paste the Forex Keltner Channel Python Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete