Momentum strategies are one of the more popular types of strategies used by many traders. You would often see trading forums on popular forex trading websites discussing various impulse trading strategies. Many professional traders also talk a lot about how they trade momentum.
This popularity is for some reason. Momentum trading strategies are simple, and it works. There are many traders who trade type of “Momo” strategies who have earned so much by doing the same strategy every day. There is even a professional trader who posted how he transformed a few hundred dollars into over a few hundred thousand dollars using the same impulse trading strategy.
The concept behind momentum is that price tends to move in the same direction whenever a strong price move has occurred. This is the essence of how momentum works even outside of trade, a large mass moving rapidly in one direction is very difficult to stop. Step in front of it and you would be crushed. The same thing is true with business. A large volume of transactions moving price in one direction is more likely to continue. Trade against it and you may regret it.
BvS Keltner Channel Momentum Forex Trading Strategy is a trading strategy based on one of the more popular types of impulse trading strategies. It uses custom indicators that are very reliable that could help traders profit permanently from the market.
Keltner Canal
The Keltner Channel is a technical indicator that could be used to identify volatility, trend and momentum.
It is composed of three lines. Its middle line is a basic Exponential Moving Average (EMA) of price. The outer lines are placed above and below the EMA line. Both lines are based on the Mean True Interval (ATR). The upper line is fixed twice the ATR above the EMA, while the lower line is fixed twice the ATR below the EMA line.
Because the Keltner Channel is based on an EMA line, it could also be used in the same way that a classic moving average line is used. It could be used to identify a trend based on where price is relative to it, as well as the slope of the line.
The Keltner Channel is also a volatile indicator because the outside lines are based on the ATR. The bands expand and contract depending on volatility. This allows traders to identify a market contraction or expansion phase.
Finally, the Keltner Channel identifies strong impetus prices. Price moving two ATRs away from the average simply means that the market suddenly had an influx of trading volume pushing price rapidly in one direction. This is the essence of momentum and the Keltner Channel allows traders to visually identify such scenarios.
Buyer vs. Seller Indicator
The Buyers vs. Sellers indicator is a trend direction filter based on market sentiment.
This indicator compares the strength of the buyers against the sellers. It then displays bars on a separate window indicating the direction of the trend. It shows lime bars to indicate a bullish market sentiment and red bars to indicate a bearish market sentiment.
This indicator could be used as a trend direction filter, where traders could qualify trades based on the color of the bars. Traders could also use as an entry and exit trigger by taking trades based on the color change of the bars. However, this should also converge with other indicators.
Business Strategy
This trading strategy is a simple impulse strategy based on the Keltner Channel and the Buyers vs. Sellers indicator.
Many impetus strategies are based on a band or channel type of indicator. The Keltner Channel also works particularly well with an impetuous strategy.
To qualify a strong momentum, a candle should close tightly beyond the upper or lower lines. Closing above the top line indicates strong bullish momentum, while closing below the bottom line indicates strong bearish momentum. These candles should also have small wicks or no wicks to confirm that the candle closed with strong momentum.
The BvS indicator then confirms the trend direction based on the color of the bars it prints. The color of the bars and the breakage of the candlesticks should confirm each other.
Indicators:
- Keltner_Chanel (default setting)
- BvS v3 (default setting)
Favorite Time Frames: 15-minute, 30-minute, 1-hour and 4-hour letter
Currency pairs: main and minor pairs
Business Sessions: Sessions in Tokyo, London and New York
Buy Business Configuration
Entrance
- The Buyers vs. Sellers indicator should print lime bars.
- A bullish candle should close above the upper band of the Keltner Channel.
- The bullish candle should have small wicks and a long body.
- The break should be fresh.
- Enter a purchase order upon confirmation of these terms.
Stop Loss
- Set the stop loss below the minimum of the incoming candle.
Exit
- Close the trade as soon as the Buyers vs. Sellers indicator prints a red bar.
Sell Business Configuration
Entrance
- The Buyers vs. Sellers indicator should print red bars.
- A bear candle should close below the lower band of the Keltner Channel.
- The bassist candle should have small wicks and a long body.
- The break should be fresh.
- Enter a sales order upon confirmation of these conditions.
Stop Loss
- Set the stop loss above the maximum of the incoming candle.
Exit
- Close the trade as soon as the Buyers vs Sellers indicator prints a lime bar.
Conclusion
This business strategy is a working business strategy.
This kind of strategy works well when aligned with a higher time frame trend. It also tends to work well at breakage after a contraction phase. However, there are also cases in which the break would occur immediately after a price returns to the middle line. This trading arrangement also tends to work well because the market is in a trending condition.
Not all businesses would work. There are cases in which price would fall almost immediately after a strong bullish break. This often happens when the candle is exceptionally long and is too far from the mean.
Practice this strategy and learn to manage trades and prices in your favor. Master this and you could win consistently from the market.
Instructions on Installing Forex Trading Strategies
BvS Keltner Channel Momentum Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and pattern.
The essence of this forex strategy is to transform the accumulated historical data and trading signals.
BvS Keltner Channel Momentum Forex Trading Strategy gives an opportunity to detect various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume an additional price move and adjust this strategy accordingly.
Recommended Forex Metatrader 4 Trading Platform
- International broker with 24/7 support.
- More than 12,000 assets, including Stocks, Indices, Forex.
- Fastest order execution and spreads of 0 pipes.
- Bonuses up to $ 50,000 since the first deposit.
- Demo accounts to test trading strategies.
Click Here for Step by Step RoboForex Trading Account Opening Guide
How to install BvS Keltner Channel Momentum Forex Trading Strategy?
- Download BvS Keltner Channel Momentum Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeline where you want to test your forex strategy
- Right click on your business chart and hover over “Template”
- Scroll right to select BvS Keltner Channel Momentum Forex Trading Strategic
- You will see that BvS Keltner Channel Momentum Forex Trading Strategy is available on your Chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already integrated with the MT4 Indicators of the MetaTrader Platform.
Click below to download:
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