Trade Gold Trading

Keltner Bands Gold Analysis & Keltner Bands Trading Signals

Developed by Chester Keltner. Described in his book "How to Make Money in Commodities"

Keltner Channels are based on ATR technical indicator, the bands use ATR indicator values to draw the band lines.

These Bands form Channels that help to spot the Gold market trends using this simple volatility channel.

How to Place Keltner Bands Indicator in Chart

Keltner Channels

Construction

Keltner Channels are similar to Bollinger Band except for the fact that Bollinger Bands use standard deviation technique to determine market volatility and to draw the bands.

For the keltner bands instead of using standard deviation, the average true range ATR measure of volatility is used.

This gold indicator is an n number of periods exponential moving average of the closing price. These bands are developed by

Adding (for the upper line) and

Subtracting (for the lower line)

An (n period simple moving average MA of an n period ATR) * an ATR multiplier.

Trading Analysis and Generating Signals

This gold indicator can be traded in much the same way as the Bollinger Bands

Continuation Signals

When trading price moves outside the bands then a continuation of the current gold trend is implied. A buy signal is when the channels are moving upwards & sell trading signal is when the channels are heading downward

Keltner Bands Gold Indicator - MT4 Keltner Band Indicator

Continuation Buy & Sell Trading Signals

Reversal Gold Signals - Double Top and Double Bottoms

Tops and Bottoms made outside the bands followed by tops and bottoms made inside the Keltner channels indicate signal for reversals in the price trend.

How Do I Use XAUUSD Keltner Bands Indicator on Chart in Platform?

Reversal Signals

Ranging Trading Markets

In ranging markets a move which originates from one Keltner channel tends to go all the way to the other channel.

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