Keltner Channel (MetaTrader indicator) — is a classical technical analysis indicator developed by Chester W. Keltner in 1960. The indicator is somewhat similar to the Bollinger Bands and Envelopes. It uses three plot lines: the middle line is the 10-day simple moving average applied to the typical price ((high + low + close) / 3), the upper and the lower bands are produced by adding and subtracting the moving average of the daily price range (High and Low difference) from the middle line. This way, a volatility-based channel is built. In this version of the indicator you can modify all the parameters of the MA. The indicator is available both for MT4 and MT5 versions of the platform.
The classical strategy with this indicator is to go long when the price closes above the upper band and to go short when it closes below the lower band. It seems to be a rather viable entry system. Exits can be based on a very conservative stop-loss (as you see on the chart, the false signals are not uncommon), a rather high take-profit and a cross with the middle line. Some traders also suggest using other indicators for confirmation.
Warning! Before you ask any basic questions regarding installation of the indicators, please, read this MetaTrader 4 Indicators Tutorial or MetaTrader 5 Indicators Tutorial to get the elementary knowledge on handling them.
Do you have any suggestions or questions regarding this indicator? You can always discuss Keltner Channel with the other traders and MQL programmers on the indicators forums.