Indeed, it is a similar concept, however, it has its peculiarity so you may want to have a closer look at it.
What is it? The KC is an envelope indicator, which means that it has upper and lower bounds, plotted around the chart with the purpose of defining the overbought and oversold levels.
Keltner Channels displayed in the IQ Option trading platform Being a trend-following indicator, Keltner Channels can help define the trend reversal points and breakouts, as well as identify the overbought and oversold levels.
The EMA defines the direction of the trend, while the two ATR values set the width of the channel, reflecting the volatility of the asset.
How to trade?
The principle is quite simple, once you get the hang of it. The KC make the trend clearly visible. A surge above the upper line indicates a strong uptrend.
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- Page 2 Keltner Channels (KC) — Technical Indicators — Indicators and Signals — TradingView
- Indeed, it is a similar concept, however, it has its peculiarity so you may want to have a closer look at it.
- Forum Trading with Keltner Channels The Keltner channel is a useful chart tool that helps you gauge the strength of trends, spot reversals and provide an overall context for how the market is moving.
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A surge below the bottom line indicates a strong downtrend. When a channel moves sideways, the trend is flat. KC signals on the price chart A downturn or upturn with the following break below or above the bottom or upper line respectively can be considered a start of a new trend.
You may apply different strategies with the Keltner Channel indicator depending on your trading style. How to set up? To set up KC, find it in the Volatility tab of the Indicators section.
You are free to adjust the settings according to your needs, though the indicator functions perfectly with the standard set up. Keltner channels indicator for binary options that the indicator is set up, you are ready to start using Keltner Channels.
Proceed to the trading platform and give it a try.