Keltner ATR Band is a free Metatrader 4 Forex indicator that can be used for both trade entry and exit, or it can act as a digital bands filter.
The indicator gets displayed in the main MT4 chart window in the form of a white trend-following channel that reveals the major trend.
General Assumptions
- A rising Keltner ATR Band channel reveals a rising trend.
- A declining Keltner ATR Band channel reveals a declining trend.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Keltner_ATR_Band+mt4.mq4” indicator for MT4
Indicator Chart (EUR/USD H4)
The picture below shows the Keltner ATR Band mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Keltner ATR Band Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Keltner Channel
Does the indicator repaint? No.
Keltner ATR Band + Cycle Identifier Day Trading Strategy for MT4
Intro
This day trading strategy combines the trend-filtering power of the Keltner ATR Band with the entry timing of the Cycle Identifier indicator.
Use the Keltner bands to identify the dominant intraday trend.
When the bands slope up, the trend is bullish. When they slope down, the trend is bearish.
Use the Cycle Identifier bars on a lower timeframe for precise entries: a green cycle bar signals a buy entry and a red bar signals a sell entry.
The setup works because it aligns momentum and volatility with specific cycle-based triggers.
Trend direction from the Keltner bands reduces countertrend trades. Cycle bars capture short bursts of momentum inside the trend.
This makes the system reliable for day trading, where you want clear bias and fast, repeatable entries.
Buy Entry Rules
- Confirm the Keltner ATR Bands are sloping up. Prefer a clear upward slope for at least three candles.
- Wait for a green Cycle Identifier bar to appear.
- Enter a market buy at the close of the bar that printed the green cycle signal.
- Place a stop loss below the recent swing low or below the lower Keltner band on the entry timeframe.
- On M15, use a stop of roughly 10–25 pips on majors, adjusted for volatility.
- Set initial take profit at 1:1.5 to 1:2 risk-to-reward.
- For H1 trend with M15 entries, target 25–60 pips depending on pair and momentum.
- If price moves quickly, move stop to break even after capturing 50% of the planned target and then trail below recent pullbacks.
- Avoid entries if the Keltner bands flatten or if a major economic release is due within the next 30 minutes.
Sell Entry Rules
- Confirm the Keltner ATR Bands are sloping down for at least three candles.
- Wait for a red Cycle Identifier bar to appear.
- Enter a market sell at the close of the bar that printed the red cycle signal.
- Place a stop loss above the recent swing high or above the upper Keltner band on the entry timeframe.
- On M15, use a stop of roughly 10–25 pips on majors, adjusted for volatility.
- Set initial take profit at 1:1.5 to 1:2 risk-to-reward.
- Typical TP is 25–60 pips for H1 trend confirmations.
- Move stop to break even after capturing half the target and trail to lock profits as the move continues.
- Do not enter sells when the bands are sloping up or when the price is testing a major support zone without clear follow-through.
Advantages
- Combines trend and cycle signals to reduce false entries.
- Flexible across pairs and intraday timeframes.
- Clear stop and target rules make position sizing straightforward.
- Short trade duration limits overnight and gap risk.
Drawbacks
- Choppy markets produce false cycle bars despite a sloping band, so expect whipsaws.
- Requires active monitoring and quick execution for best results.
- Spread and slippage can eat profit on smaller targets; use major pairs and active sessions.
- Large news events can invalidate the band slope and cause larger losses.
Example Case Study 1 — EUR/USD, H1 trend / M15 entry
On H1, the Keltner bands sloped up for several hours. The green Cycle Identifier bar is printed at 1.1000.
The trader entered at 1.1000 and placed a stop loss at 1.0980, 20 pips below the entry.
The target was set to 1.1030 for a 30 pip take profit.
Price moved in favor and hit the TP for +30 pips.
Example Case Study 2 — GBP/USD, M30 trend / M5 entry
The M30 Keltner bands showed a clear downward slope. A red Cycle Identifier bar printed at 1.2700.
The trader sold at 1.2700 with a stop at 1.2718, 18 pips above entry.
Target was 1.2674 for 26 pips. Price fell quickly, then retraced.
The trader trailed the stop once 13 pips were in favor and exited at 1.2680, locking 20 pips when a counter-move began.
Strategy Tips
- Backtest the method on a demo and collect stats per pair and timeframe.
- Prefer major pairs during the London and New York sessions for best liquidity.
- Adjust stops by current ATR to match real-time volatility rather than fixed pips.
- Avoid trading into high-impact news. Remove open positions if a scheduled event creates unpredictable moves.
- Use fixed fractional risk and never risk more than a small percentage of equity per trade.
- Keep a trading journal and review losing trades to refine entry timing and stop placement.
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Download the “Keltner_ATR_Band+mt4.mq4” indicator for Metatrader 4
