Profitable strategy on the Keltner Channel indicator for Binary Options

Keltner Channel is a classic technical analysis indicator consisting of two bands above and below the moving average of the price indicator, the width of which is determined as a percentage of the average price change over the period. This indicator can be used not only in the currency, but also in other financial markets.

Trading with this indicator is easy and its principles are very clear. Let's use it as a trending tool and consider in this article a simple and effective scalping strategy based on it.

Strategy characteristics:

Type: Trend

Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.

Trading asset: Any currency pairs. The main requirement is a fixed (2-3 points) spread and no hidden fees.

Trading time: All Forex trading sessions.

Recommended expiration: 5-10 min.

Used indicators:

• Keltner Channel. Trend channel indicator on the Moving Average. We trade "classically": for a breakdown or a rebound from the channel lines. It is always necessary to confirm the entry point, it is good when the line at the moment of the opening is above/below a strong price level, such as support/resistance.
• Accelerator Oscillator. The indicator shows the change and dynamics of the trend. Before a correction or reversal, the rate of price change decreases and rises on a strong trend. Confirms the Keltner Channel signal. A histogram reversal can be used as a change between overbought and oversold periods.

We use Pocket Option and the vfxAlert signals. 

Trading signals in Pocket Option broker app:

CALL option. The market is uptrend or reversal. The price moves from the lower border of the Keltner Channel to the upper one. Options on the breakdown of channel lines. The oscillator moves from bottom to top towards the zero level or higher.

PUT option. Opposite signals: Downtrend. Channel lines break through from top to bottom. The oscillator is below the zero level or the histogram is reversing down.

The signals are simple, but beginners should wait for confirmation of a trend or price reversal from the Accelerator Oscillator. Especially when using Pocket Option copy trading. We trade options for a rebound or breakdown of the channel lines from only 3-5 candles after it starts; we will wait for all Keltner Channel lines to reverse.

Recommendations

The fewer points between the channel borders, the higher the probability of a strong movement after the breakdown. 

For a rebound, the reverse situation is: there should be at least 30-40 points.

During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after publication; cautious traders can close current trades if the Pocket option trading platform allows.

An increase in expiration makes it possible to get a reliable strategy for conservative intraday scalping for a stable profit with the Pocket Option broker. We start with the basic settings of the indicators and then look at the current volatility of the asset by trading sessions. If necessary, change the values and test on a demo account. We remind you once again that the most profitable binary options signals will only be in trend zones, during flat periods we remain out of the market!