Now let’s examine how to trade breakouts using Keltner channels.
Breakouts from the Keltner Channel act as strong hints where the price is running off to next.
If the candles start to break below the BOTTOM, then the price will usually continue to go down.
Keeping an eye out for these channel breakouts can help you catch a big move as early as possible.
The channel top typically holds as a dynamic resistance while the channel bottom serves as dynamic support.
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.
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