AssistantTraderKeltner-the indicator forms three lines on the price chart (the Keltner channel): the middle line is a simple moving average, the upper and lower lines are obtained by adding and subtracting the moving average of the daily price range (the difference between the maximum and minimum) from the middle line. Thus, a channel is built based on the volatility.
- MA_Period – the period of the moving average (the middle line);
- Mode_MA – type of moving average (middle line);
- Price_Type – the price type for the moving average (the middle line).
The classic use of this indicator is to trade for a rebound from the upper and lower lines. Take profit near the middle line, stop loss after breaking through the upper or lower line, depending on the direction of trading.