Keltner Channel Oscillator Metatrader 5 Forex Indicator Review

The Keltner Channel Oscillator Metatrader 5 Forex Indicator is a technical tool used by traders to measure market volatility. It is based on the Keltner Channels indicator, which plots an upper and lower band around a moving average of price action.

The oscillator then measures the distance between these bands and the current price, providing insights into potential breakouts or reversals. As part of the MetaTrader 5 platform, this indicator can be customized with various settings such as periods and deviations to suit individual trading strategies.

Keltner Channel Oscillator Metatrader 5 Forex Indicator

Download Free Keltner Channel Oscillator Metatrader 5 Forex Indicator

Its popularity among forex traders lies in its ability to identify trend changes early on, while also indicating potential trade entry and exit points. In this article, we will explore the mechanics behind the Keltner Channel Oscillator Metatrader 5 Forex Indicator and how it can aid traders in making informed decisions.

Understanding The Keltner Channels Indicator

The Keltner Channels is a technical indicator used to identify potential price trends and reversals in the forex market. It consists of three lines: an upper band, middle line, and lower band.

The bands are calculated using a formula that takes into account the average true range (ATR) of the currency pair being analyzed.

Interpreting Keltner Channel signals involves analyzing the relationship between price movements and the position of the bands. When prices move above or below the bands, it may be interpreted as a signal that suggests either overbought or oversold conditions. Additionally, traders often look for instances where prices break through one of the bands as this can indicate a shift in momentum.

Keltner Channel calculations involve taking an exponential moving average (EMA) of typical price data along with adjustments based on ATR. Specifically, the upper band is calculated by adding two times ATR to the EMA while the lower band is determined by subtracting two times ATR from the EMA. The middle line represents the EMA only.

By understanding how these values are derived and interpreting their relationship with price movement, traders can use Keltner Channels to make informed trading decisions in the forex market.

Exploring The Keltner Channel Oscillator

Having gained an understanding of the Keltner Channels Indicator, it is now time to delve into exploring its oscillator counterpart.

The Keltner Channel Oscillator is a technical analysis tool that utilizes the same principles as the Keltner Channels but presents them in a format that’s easier for traders to read and interpret.

The oscillator uses different calculations than those used in traditional moving averages to determine market trends.

It operates by measuring the distance between price movements and then plots these measurements on a histogram.

Traders use this histogram to identify periods of overbought or oversold conditions within the market.

To effectively utilize the Keltner Channel Oscillator, one must first understand how to adjust its settings according to their trading style and preferences.

This involves experimenting with different parameters such as period length, deviation factor, and smoothing type.

Additionally, backtesting strategies can be employed to assess the effectiveness of specific parameter combinations before utilizing them in live trades.

By taking these steps, traders can maximize their gains while minimizing risks when using this powerful indicator tool.

Implementing The Indicator In Forex Trading

When it comes to implementing the Keltner Channel Oscillator in forex trading, one can use it for trend confirmation. By analyzing the oscillator’s movements alongside the price chart, traders can identify potential trends and confirm their strength. If the oscillator moves above or below certain levels, such as zero or 50, it can signal a change in trend direction.

Incorporating Keltner Channels into a trading strategy is another way to utilize this indicator. The channels provide dynamic support and resistance levels based on market volatility, which can help traders determine entry and exit points for trades. For example, if the price is trending upwards and touches the upper channel line, traders may consider selling as the price could potentially reverse from that level.

Overall, using the Keltner Channel Oscillator along with Keltner Channels can enhance a trader’s technical analysis toolkit and improve their decision-making process. However, like any indicator or strategy, it should not be used alone and should be combined with other forms of analysis for more accurate results.


The Keltner Channel Oscillator is a technical indicator that traders use to identify potential trading signals in the forex market. By combining the concepts of volatility and moving averages, this indicator provides insight into possible breakouts or trend reversals.

When using the Keltner Channel Oscillator in MetaTrader 5, traders can customize their settings to suit their individual preferences and strategies. The oscillator can be used alone or in conjunction with other indicators for greater accuracy.

Overall, by understanding and utilizing the Keltner Channel Oscillator, forex traders have another tool at their disposal to make more informed decisions when entering or exiting trades.

As with any technical indicator, it is important to backtest and practice using it before implementing it in live trading situations.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit

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