The Keltner Channel is a popular indicator among traders that helps identify market volatility. It consists of bands that sit above and below an exponential moving average (EMA), creating a visual envelope around price action.
Named after its creator Chester Keltner, who first introduced this system in his 1960 book "How to Make Money in Commodities", the Keltner Channel combines two key indicators: the moving average and the Average True Range (ATR).
This indicator's bands are calculated by adding and subtracting a multiple of the ATR from the EMA, which helps traders gauge potential price movements effectively.
Here's how the calculation works:
Keltner Upper Channel = EMA (close, x) + (m * ATR (y))
Keltner Lower Channel = EMA (close, x) - (m * ATR (y))
Where:
- x - EMA period;
- m - multiplier;
- y - ATR period.
To use this indicator effectively, you’ll need to work with the СMoving_Average class from the SmoothAlgorithms.mqh library. If you're unsure how to implement this, check out the article "Averaging Price Series for Intermediate Calculations Without Using Additional Buffers" for detailed guidance.
- Ensure that SmoothAlgorithms.mqh is placed in your terminal_data_folder\MQL5\Include\
- And don’t forget to place Keltner_Channel.mq5 in your terminal_data_folder\MQL5\Indicators\
Comments 0