How to Trade Forex Using Keltner Channels.

Now let’s look at how to trade forex using Keltner channels.

Keltner Channels show the area where a currency pair normally hangs out.

The channel top typically holds dynamic resistance while the channel bottom serves as a dynamic support.

How to Use Keltner Channels as Dynamic Support and Resistance Levels

The most commonly used settings are 2 x ATR (10) for the upper and lower lines and EMA (20), which is the middle line.

This middle line is pretty significant since it tends to act as a pullback level during ongoing trends.

Uptrends

In an UPTREND, the price action tends to be confined in the UPPER HALF of the channel, which is between the middle line as support and the top line as resistance.

Downtrends

In a DOWNTREND, price action usually hangs around the BOTTOM HALF of the channel, finding resistance at the middle line and support at the bottom line.

Ranging Market

In a RANGING MARKET, price usually swings back and forth between the top and bottom lines.

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