No matter what market you are trading in, supply and demand reign supreme, and the trader’s task is to recognize the imbalance of these forces and use it in trading. The ability to interpret such moments is very important, as this is one of the keys to profitable trading.

However, it is not always possible to determine such moments without auxiliary tools, which are indicators for binary options . There are many strategies built on various moving averages and similar indicators, and therefore it makes sense to discuss a binary options strategy based on a popular and effective indicator - Keltner Channels .

This indicator was created by trader Chester Keltner, and the first information about the indicator appeared in his book.

The indicator itself is based on Moving Averages, and therefore is easy to learn. And most importantly, compared to similar indicators, it generates much fewer false signals and is therefore perfect for options trading.

Keltner Channels Strategy

Description of the strategy for binary options Keltner Channels

In order to use any tool as effectively as possible, you need to study its components and how it works. This approach will help you achieve successful application of the indicator much faster. And if we remember that the Keltner Channels are based on moving averages, it becomes clear that their construction can be calculated manually, which is a plus.

The indicator has only three parameters:

  1. MA period.
  2. MA type.
  3. Price type.

All we need to change in the indicator is the period, since the remaining parameters will not significantly affect the operation of the indicator:

Indicator parameters

If we return to the calculations of the indicator, the main indicator in this is the middle line. It is calculated for a certain period of time and uses the values ​​of the highs and lows of bars. After this, channel boundaries are added to it, which are spaced by the value “2”, which is standard:

Standard deviation of lines

Keltner channels can be used in trading in several ways:

  • Trading inside the channel.
  • Channel breakdown.

I would like to note that the second option involves trading with increased risks, since most often such entries will be against the trend, but the first option is simpler and is especially suitable for beginners.

A special feature of the first option is trading during the Asian trading session , since at this time most markets trade in a narrow range and with reduced volatility.

Trading rules for binary options strategy Keltner Channels

The point of trading using this strategy for binary options is that any exit beyond the boundaries of the channel is considered a deviation from the standard average and most often the impulse at this time will weaken, which will be expressed by rollbacks:

Examples of breakout trades

Therefore, for Call options we will need to get a breakout of the lower border of the channel and open a deal after the candle closes, and for Put options we wait for a breakout of the upper border, after which we also open a deal. Expiration in this case is one candle from the current time frame.

And as shown in the figure above, only the first penetration of the border is considered. It is highly not recommended to use the second breakout in trading.

The only disadvantage of this strategy is that it requires working at night. It is better not to trade after 8:00 am Moscow time.

Examples of trades on the strategy for binary options Keltner Channels

The first breakout and you can enter the position (Call):

Call option

The same thing with the Put option. After the first breakout, you can open a trade:

Put option

There are situations when the impulse is very strong and there may not be a rollback immediately. In this case, you can use the Martingale system and open trades on each subsequent candle, but it is worth remembering that this method entails very high risks and, moreover, after a strong impulse, the market may even reverse.

Conclusion

This trading strategy is simple and understandable, which allows beginners to use it to the fullest. Also, nothing prevents you from supplementing such a strategy with any filters that will take the use of Keltner Channels to a new level.

The main thing is not to forget that by testing all options on a demo account, you can insure yourself against unnecessary losses. You can get such an account from one of the binary options brokers from our rating . We wish you successful trading!

Download indicators and template for the Keltner Channels strategy

Download

Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

Binarium

See also:

How to make money on binary options

How to correctly determine the trend in the market?

Current bonuses and promotional codes for 2020

Books on trading

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Генчик
Генчик
3877 Каналы кельтнера это классика как и машки, стохастик или рси, спасибо за разбор в любом случае
22 April 2020
Answer
Максим
3878 Не знал что по ним можно работать в азиатскую сессию, правда кто будет не спать ночью ради этого))
22 April 2020
Answer
Алексеевич
3879
Не знал что по ним можно работать в азиатскую сессию, правда кто будет не спать ночью ради этого))
может у кого бессонница, и вот можно будет поторговать))
22 April 2020
Answer
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