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Keltner Channel is one of the most widely used indicators in the Pocket Option trading platform. This indicator is free to use and you can even try this indicator on the Pocket Option demo account.
What is Keltner Channel?
Keltner Channel is a technical analysis tool that was developed by Chester W. Keltner in the 1960s via this indicator, you can predict upcoming trends and reversals. This indicator is made with a mixture of ATR (Average True Range) and Moving Averages mostly Exponential moving averages. The Keltner Channel consists of three lines:
Upper Line: This line displays the addition and multiplication of EMA and ATR.
Middle Line: This line displays the Exponential moving average (EMA) of a security price.
Lower Line: This line displays the subtraction and multiplication of EMA and ATR.
How to add Keltner Channel on Pocket Option?
The first thing you need to do is log into your Pocket option account. In case, you don’t have access to your Pocket Option account click here. Once you have logged in click on the indicator button at the top left of the chart and search for the indicator in the list. Now, click the name and make the necessary changes you desire once you are done click apply.
How to trade with Keltner Channel on Pocket Option?
Trading with Keltner Channel is very simple and easy. The price oscillates above or below the indicator lines. You can easily find trading signals with a price breakout. In this article, I will share two perfect trading strategies via which you can find trading signals with Keltner Channel on Pocket Option.
Solo Keltner Channel: While using the Solo Keltner Channel you need to focus on breakout. You should place a buy trade when the price breaks out of the lower channel similarly, place a sell trade when the price breaks out of the upper channel.
Indicator combination: Trading with Solo Keltner Channel is not a bad strategy However, If you want better results you should always combine the Keltner Channel with other trend indicators like RSI or Stochastic. For, instance I am combining Keltner Channel with RSI. when you see the price breaks out of the lower channel plus the RSI line is near line 30 it signals a strong bullish trend and here you should consider placing a buy trade conversely, when you see the price breaks out of the upper channel plus the RSI line is near line 70 it signals a strong bearish trend and you should consider placing a sell trade here.
In case you Don’t Know
RSI or you can call it Relative Strength Index is a popular technical analysis tool used in technical analysis to measure the momentum and strength of price movements. This indicator was developed by J. Welles Wilder, a popular name in the field of trading. He is also the developer of other popular indicators like ATR (Average True Range), and Parabolic SAR.
Talking about RSI, RSI has three main important components i.e. Moving average line, Oversold level, & Overbought level. When the moving average line is oscillating near line 30 it means the market is at an oversold level and the price is currently bearish conversely, When the moving average line is oscillating near line 70 it means the market is at an overbought level and the price is currently is bullish.
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