The most important MT4 indicator I am using at the moment is the Keltner Channels ATR indicator. The standard Keltner Channel is modified by the ATR indicator (+/- 2.25 ATRs). One of the ways to find an edge with channel-based indicators is to see how much of the price action is contained inside the channels. Another important statistic is how many bars are outside the channels. When you see bars outside the channel, this could potentially show exhaustion and the trend could reverse.
Here is an EA for MT4 which I developed to get the statistics for outside/inside bars when using my KeltnerChannelATR indicator. Please be aware that this EA doesn’t open trades. It simply calculates a number of inside and outside bars for a certain period.
You can download the indicator here.
You will get it together with my free dividend investing e-book.
There are two ways you can trade this indicator. One of them is to trade pullbacks around 20 EMA after the price moves beyond the upper band for a long trade and the lower band for short trade:
Another way to trade the Keltner Channels ATR is to fade the moves beyond the Keltner Channel. In this case, T/P should be somwhere around 20EMA:
Of course, you shouldn’t trade this indicator on its own. Try using your price action skills to improve your edge.
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