Trade Gold Trading

Keltner Bands Gold Analysis & Keltner Bands Signals

This indicator was developed by Chester Keltner and detailed within his publication, "How to Make Money in Commodities."

Keltner Channels are derived from the ATR technical indicator, employing its values to plot the band boundaries.

These bands create channels that assist in identifying trends in the gold market through a straightforward volatility channel.

How to Add Keltner Bands Indicator in Chart

Keltner Channels

Construction

Keltner Channels bear a resemblance to Bollinger Bands, with the key distinction being that Bollinger Bands employ the standard deviation methodology/technique for assessing volatility and for the drawing of the bands themselves.

The Keltner Channels use the Average True Range (ATR) to measure price volatility instead of relying on standard deviation.

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

Adding (for the top line) and

Taking Away (for the bottom line)

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

Trading Analysis and Generating Signals

This specific indicator designed for gold can be applied and traded much like the Bollinger Bands indicator.

Continuation Signals

When the price advances beyond the established bands, it suggests a continuation of the present gold trend. A buy trading signal is indicated when the bounding channels ascend, while a sell signal is implied if the channels descend.

Keltner Bands Gold Indicator - MT4 Keltner Band Indicator

Continuation Buy & Sell Trading Signals

Reversal Gold Signals - Double Top and Double Bottoms

High and low points outside the bands followed by high and low points inside the Keltner bands show the signal for changes in the price trend.

Using XAUUSD Keltner Bands – How to Apply the Technical Indicator on Your Chart

Reversal Trade Signals

Ranging Trading Markets

In markets that stay within a range, if the price moves from one Keltner channel, it typically reaches the opposite channel.

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