Trading in cryptocurrency is one of the way to make money and there are different indicators that can be use but I will like to talk about one of the indicator which is Keltner Channel.
Keltner Channels are volatility-based indicators that can be used to determine the direction of a trend when put on either side of an asset's price.
Chester Keltner first introduced this indicator in the 1960s, with an original formula that used a high low price range and a simple moving average (SMA) to calculate the bands. However, in the 1980s, a new formula was introduced that used average true range (ATR), which is still in use today. This ATR works in conjunction with breaks placed above or below the top and bottom barriers in the chart, signaling a continuation.
The indicator is made up of three lines, with the center line representing the price's exponential moving average (EMA).
The upper and lower bands are two times the ATR of the EMA's above and below it, respectively.
As the ATR-measured volatility expands and contracts, the brand expands and contracts as well.
This is calculated using the following formulas
Middle line = Exponential Moving Average (EMA) of the price
Upper Band = EMA + (2 × ATR)
Lower Band = EMA - (2 × ATR)
Where
The Exponential Moving Average (EMA) is over 20 periods, the ATR is over 10 or 20 periods and 2 is called multiplier.
Step 1: Go to tradingview and select the coin you want to trade with.
Step 2: Click on the indicators & strategies sign
Step 3: Type in the Keltner Channel on the search bar and then click on Keltner Channel
Now we have the indicator on our chat.
