Strategy that combines Keltner Channels and Stochastic Oscillator.
Enters positions when price reaches Keltner Channel boundaries and Stochastic confirms oversold/overbought conditions.
This setup looks to catch reversals near the Keltner bands while the oscillator confirms momentum shifts. Signals can trigger in both directions whenever price presses against an envelope.
Short-term traders seeking quick reversals may find it useful. Risk is contained by an ATR-based stop distance.
Entry Criteria:
Long: Close < LowerBand && StochK < StochOversold
Short: Close > UpperBand && StochK > StochOverbought
[]Long/Short: Both
[]Exit Criteria:
Long: Close > EMA
Short: Close < EMA
[]Stops: StopLossAtr ATR from entry
[]Default Values:
EmaPeriod = 20
AtrPeriod = 14
KeltnerMultiplier = 2.0m
StochPeriod = 14
StochK = 3
StochD = 3
StochOversold = 20m
StochOverbought = 80m
StopLossAtr = 2.0m
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: Keltner Channel, Stochastic Oscillator
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium