The Keltner Channel Metatrader 5 forex indicator is a standard technical tool created by Chester Keltner in 1960.
The indicator shares some similarity with the Bollinger Bands.
There are essentially three chart lines that are available on the keltner_channel MT5:
The middle line is a 10-day simple moving average by typical prices [(high + low + close) / 3].
The upper and lower lines are formed by adding and deducting the moving average of daily price range (difference between peak and trough) from the middle line.
The channel gets formed in line with volatility.
Three inputs parameter are paraded on the keltner_channel MT5 fx indicator;
- MA_Period – defines the period moving average (middle line) set at a default value of 10
- Mode_MA – defines the moving average (middle line) type
- Price_Type – defines the price type for the moving average (middle line)
The GBP/USD H1 chart below displays the Keltner Channel Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when price trades along the upper outer red line of the keltner channel Metatrader 5 custom forex indicator.
Sell Signal: Go short when price trades along the lower outer red line of the keltner_channel Metatrader 5 custom forex indicator.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the lower outer line of the keltner_channel MT5 forex indicator.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price closes above the upper outer line of the keltner_channel MT5 forex indicator.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (MA_Period, Mode_MA, Price_Type), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | volatility
Copy and paste the keltner_channel.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)