Binary Options Keltner Channel trading strategy

The Keltner Channel strategy in binary options trading uses Keltner Channels to identify trend strength and spot reversals by providing upper and lower chart limits.

The main motive of Keltner Channels is to provide charts with information regarding spot reversals and to determine the strength of trends. In this article, you will learn more about this useful strategy.

Binary Options Keltner Channel trading strategy

Good to know:

  • Keltner Channels are used to identify trend strength and spot reversals by providing upper and lower bounds on a chart.
  • The indicator combines Average True Range (ATR) and Exponential Moving Average (EMA) to offer precise trading information.
  • It operates typically over 20 periods, with time settings adjustable from 1 minute to 24 hours.
  • Strategies with Keltner Channels involve using Bollinger Bands for clear buy/sell signals and breakout methods for immediate trading decisions.

What is the Keltner Channel?

Keltner Channel indicator

The Keltner Channel indicator is also known as the envelope indicator. The reason is it can show you the two most vital things a trader requires.

  • Upper and Lower Bounds
  • Overbought and Oversold levels.

These two things are very effective when it comes to plotting a chart. And as a result, the chart can guide you for the best.

Again, when you need precise information regarding your trading, this platform won’t make you disappointed because they have something special for you as Average True Range, also known as ATR. The most significant benefit of it is, it can narrow down the information with exact data. So, trading will be only one click distant.

When it comes to giving extra bonuses, it will offer you ATR (2) for above and EMA (Exponential Moving Average) for the next 20 days for below.

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What are the highlights of Keltner Channels?

There are certain things you need to know about this indicator. Like most common queries are being stated here.

  • How many periods are required to make this indicator work?
  • How much time does the indicator need to calculate the moving average?

The answers to these questions are simple. Generally, for periods, it needs 20 periods in the case of Keltner Channels, and for the second question, the time depends on how you have selected your settings. So, depending on that and the number of bars (generally 20), the time should be between 1 minute to 24 hours.

Let’s know how you can track your trading with the help of this indicator. Everything depends here on the upper and lower channel.

  • As usual, when the point will reach the upper band, it means the band has strength and can easily upraise money. Again, here you’ll have two situations. One is with the uptrend and with the downtrend. Those don’t have too many different meanings. However, the downtrend means the price just started to fall.
  • When the point is at the lower band, it means the price is at the weak point. Here you’ll see two situations same as the upper level again. As everything is the same, but the case for the upper trend will be different. As it will represent the end of the downtrend, and the price will start to grow.
  • The last thing which carries essential quality is the middle line. The central line means the moving average. It will help you to understand the price in between the upper level and lower level. When the downtrend line is on the middle line, remember it is the worst time to buy. This is because the interest will be lower at that time. If it is on the middle line for the uptrend, don’t sell anything as it is the worst time to sell.

Thus by offering you an excellent price analysis power, it will help you to win every time. As making quick but proper decisions is essential for trading, Keltner Channel will help you with this.

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What’s the best strategy to win every trading with Keltner Channel?

Winning over any trading needs depth knowledge regarding the market and your trading platforms. Because both of these are crucial for fixing up a strategy, as you are a strong trader, let’s know some vital tips you can use with Keltner Channel.

#1 Take advantage of the Bollinger Bands

Combining bollinger bands with Keltner channels

Bollinger band is an indicator that helps traders to understand the situation clearly than charts and bars. If you stick to these bands, the Keltner Channel will offer you an outstanding facility already discussed above. Let’s see how you can imply it.

Bollinger bands will show you the buy signal when the band will be on the upper trend. You have to sell when the Bollinger band is on the lower level. RegThedle line will show you the Pullback option, which is for your security purposes. With this Option, by verifying the middle line position, you can keep or sell your price.

#2 Exceptional winning strategy

Combining Breakouts with Keltner channels

Here’s something new for you. Remember, if you are seeing that the like is going down, you must Sell the trading. Apply the latest Break Out strategy. It means if the price is breaking to the upper level or lower level, you can buy or sell instantly. When the price is breaking to the upper level, Buy it. And in case of a downtrend, Sell it.

When it is the middle line, there is no certainty about the price movement. So, the general rule for trading gets different when it is boundary level and central line. Then, the case will be reversed. However, with the Break Out facility, you can be assured about your price’s future. If you were wondering about the differences between first and second strategies, then here it is. Apply these two, as these are the unique offers from Keltner Channel.

Binary Options Keltner Channel strategy

Keltner channels

The demand for indicators is at the peak of any trading platform. So naturally, traders will get attracted to some special tools which always help them with correct information. Several indicators tools are running on the internet. Selecting the best one by avoiding the worst is the challenge for a trader.

Here you’ll know such an indicator called Keltner Channels. Keltner Channels’ prime motive is to provide charts, information regarding spot reversal and determine the strength of the trends. With the help of this crucial information, any experienced trader can make money. So let’s know everything about it.

Conclusion: Keltner Channels can be useful for binary trading

Binary Option Keltner Channel indicator is highly beneficial to the traders. As many traders are using this indicator and winning their binary options, you can do the same. However, make sure you are not doing 100% trust on it. The reason is, it is perfect with ADX or RSI, so other than these two, it can be a problem.

Binary options trading is very effective trading nowadays. Earning money will be super easy if you take the right pathway. With Keltner Channel, you can assure your investment gets right track. You can also track your every single period with this excellent indicator.

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Frequently asked questions about the Keltner Channel indicator:

What are Keltner Channels?

Keltner Channels are a trading indicator that uses ATR and EMA to provide upper and lower bounds on a chart, helping identify trend strength and potential reversals.

How do Keltner Channels work?

They operate over typically 20 periods, using ATR for volatility and EMA for trend direction, to indicate overbought or oversold market conditions.

What makes Keltner Channels unique in trading?

Their combination of ATR and EMA offers a unique perspective on market trends and volatility, making them valuable for spotting potential trading opportunities.

What are some strategies using Keltner Channels?

Strategies include using them with Bollinger Bands for clear buy/sell signals and breakout methods for immediate trading decisions.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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