Quote:
Originally Posted by tymen1
On the 5 min chart we set up the usual Bolinger bands.
We now also enter on it the Keltner channel.
The Keltner is based on Average True Range and, as such, is a volatility based indicator.
It is extremely sensitive to volatility and has very little lag to it.
Look at the following hyperlinks :
Capture Profits Using Bands And Channels
Trading the BSE using Keltner Channels
My settings for this Keltner channel are a little unusual - period 5, factor 1. This makes sure that most of the price action is inside the channel (intended). |
Hi again,
I don't have a Keltner channel on my MT4 so from reading the articles at the links you provided, it says basically it's a combination of 3 MA's (one to high, one to low, and 1 median)...but what period...I presume 5 as yours above, and 1 would be Simple or Exponential?
In trying to compare the using the MA's in this way to the ATR , I guess setting the MA's so low it reduces the lag right down so then it is more sensitive to volatility?
Thanks
