574# Keltner Channel Reversal Trading
Keltner Channel with Dtosh & Arrow
Submit by FreddyForex 16/06/2014
Keltner Channel reversal trading is a trend reversal trading system.
Time Frame 30 min or higher but the best time frame are 4H and daily.
Markets: Forex, CFD, Futures, Metals. The best for trade is CHF.
Metatrader Indicators:
Keltner Channnel (Ma Period=21; NUM ATRS=3.0, Price Type =0);
Dtosh & Arrow indicator is based on two indicators: RSI and Stochastic ( RSI period 13, and Stochastic 8,5,5, Smoot period 5.0).
Rules for Keltner Channel Reversal Trading
Long Entry
Price must touch or go below the lower Keltner Channel band.
Dtosh & Arrow indicator must decline below the 30 level and cross back up.
When appears a greeen buy arrow, place a buy order at the open of the next bar.
After that, set the stop loss just below the most recent swing low + n pips depends by time frame ( example 4H time frame more 15-20 pips).
Set the take profit equal to the stop loss (1:1 risk reward ratio).
Another exit option for the in the trending market is closing the trade when there's reversl signal.
Short entry
Price must touch or go above the upper Keltner Channel band.
Dtosh & Arrow indicator must go above the 70 level and cross back down.
When appears a red sell arrow, place a sell order at the open of the next bar.
After that, set the stop loss just below the most recent swing high + n pips depends by time frame ( example 4H time frame more 15-20 pips).
Set the take profit equal to the stop loss (1:1 risk reward ratio).
Another exit option for the in the trending market is closing the trade when there's reversl signal.
In the pictures Keltner Channel Reversal Trading in action.
