Today I will talk about a trading strategy based on the Keltner channel. Visually, channels are similar to Bollinger Bands.

The strategy is suitable for both day trading and swing trading.

To work, we need RSI, MACD and the Keltner channels themselves.

We go to the search for indicators and type in the word “Channel” and the required indicator will pop up. We double-click on it so that TWO of these channels are on the working panel in Tradingview.

I double-clicked and on the workspace we see TWO KC channels

How to set up channels for intraday trading!

1. Click on channel settings and you will see this menu

In the first Keltner Channel, you need to do the following:

Where it is written in the Timeframe settings, click on the SCHEDULE drop-down menu and select 1 HOUR from the drop-down list.

The result will be like below:

2. Now we set up the second Keltrner channel. Click on the gear and the settings menu will pop up again, it will look like this:

Next, in the second channel, we again change the Timeframe value and the multiplier. Timeframe is changed to 1 hour, multiplier 2 is changed to 1.5.

As a result, the settings will look like this:

Your graph will look like this:

WORK TF 15 minutes. We have a TF of 15 minutes, but we will receive data from the TF for 1 hour.

At the same time, we see how the price reacts to the channel boundaries. They work as support or resistance, and sometimes as accumulation.

How to trade?

1. We break through the middle of the channel with a candle and open a long or short position. The only downside is that, as you can see from the graph, there will be many, many false signals.

2. The second is a safer strategy. We connect the indicators RSI, MACD. In standard RSI settings, the values ​​are 70 and 30, so you see a light purple zone in the range of 30-70.

We need to change the value of 30 to 40, and 70 to 60, in the end we will have RSI configured like this

and as we see on the graph, the light purple zone has become a little narrower and is in the range of 40-60

As a result, a signal to go long will be when the candle breaks through the middle of the channel, the RSI is greater than 50 or better than 60, and a green histogram has formed on the MACD.

We close the deal along the boundaries of the Keltner channel.

Happy bidding everyone!