The Keltner Indicator

MetaTrader M

aster Edition

◚⯎

Table of contents

1. Overview 3

2. Using the Keltner indicator 42.1 Adding the indicator to a chart 4

2.2 Choosing the settings for the indicator calculation 4

2.3 Colours and line styles 4

2.4 Alerts 5

3© Swissquote Ltd | MetaTrader Master Edition | Keltner Indicator > Contents

1. Overview

The Keltner indicator shows Keltner channels: similar to Bollinger® bands, but with the size of the channel varying based on ATR rather than standard deviation.

https://en.wikipedia.org/wiki/Keltner_channel

You can configure the indicator to give you alerts when the price crosses the upper or lower channel (usually regarded as a reversal signal).

4© Swissquote Ltd | MetaTrader Master Edition | Keltner Indicator > Contents

2. Using the Keltner indicator

2.1 Adding the indicator to a chartYou add the Keltner indicator to a chart in the usual MT4 way, either by dragging it from the Navigator onto a chart, or by double-clicking on it in the Navigator. You can also use standard MT4 features such as adding the indicator to your list of Favorites, or assigning a Hotkey to it.

2.2 Choosing the settings for the indicator calculation

You set the parameters for the indicator calculation via the Inputs tab. There are three main settings which control a Keltner channel:

• The moving-average period (e.g. 20 bars)• The ATR period (e.g. 10 bars)• The multiple of the ATR to add/subtract to the moving average (e.g. 2)

In addition, you can also choose the type of moving average to use (SMA, EMA etc), and what type of price to base it on: close price, median, “typical” etc.

2.3 Colours and line stylesThe indicator draws three lines: the mid-point (moving average), plus the high and low channels. You can set the colour and style for these lines in the usual way, via the Colors tab for the indicator.

5© Swissquote Ltd | MetaTrader Master Edition | Keltner Indicator > Contents

2.4 AlertsYou can use the Inputs tab to turn on pop-up alerts whenever the current price crosses the upper or lower channel.

To prevent repeated and too-frequent alerts, the indicator will only display a maximum of one alert per bar. Once the price has crossed the upper or lower band, a new alert will not be generated until (a) the price has crossed back inside the channel, and then (b) there is a new cross beyond the upper or lower channel in a later bar.

The content of this guide is purely informative and does not constitute an offer or a recommendation to trade a specific product and is not to be understood as a piece of advice of any sort, in particular regarding trading, tax and legal questions. The information or opinion regarding a product expressed in this guide do not take into consideration the investment objectives, the assets, the experience or the knowledge of a single investor. Swissquote Bank Ltd and its employees shall in no event be liable for damages or losses arising directly or indirectly from decisions made on the basis of the content of this guide. The content of this guide was produced by Swissquote Bank Ltd as per the current date and may be subject to change without prior notification. Although the content of this guide has been obtained from and is based upon sources that Swissquote Bank Ltd believes to be reliable, Swissquote Bank Ltd assumes no responsibility for the quality, correctness, timeliness or completeness of the content of this guide. This guide may not be reproduced in part or full without the written prior consent of Swissquote Bank Ltd. Forex transactions are highly speculative, involve an extreme degree of risk and are generally suitable only for persons who can assume and sustain a risk of loss in excess of their Forex margin. Forex transactions may, by their nature, generate losses that are in theory unlimited. In the absence of prior intervention, the loss could greatly exceed all the client’s assets deposited with the Swissquote Bank Ltd.

Geneva - Zurich - Bern - London - Dubai - Malta - Hong Kong

www.swissquote.com