Now let’s take a look at how to trade forex using Keltner channels.
The channel top typically holds as a dynamic resistance while the channel bottom serves as a dynamic support.
In an UPTREND, the price action tends to be confined to the UPPER HALF of the channel.
This is between the middle line as support and the top line as resistance.
In a DOWNTREND, price action usually hangs around the BOTTOM HALF of the channel.
You’ll find resistance at the middle line and support at the bottom line.
In a RANGING MARKET, price usually swings back and forth between the top and bottom lines.
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