Keltner Channels use ATR to build dynamic envelopes around an EMA. In trending intraday conditions, bounces off the middle EMA (or lower band in uptrend) offer quick scalping entries with clearly defined risk.
Indicators Used
Keltner ChannelEMA 20
Rules
๐ Long Middle Band Bounce
- Confirm intraday uptrend: price repeatedly bouncing off middle Keltner band
- Wait for pullback to middle band (EMA 20)
- Bullish candle forms at band (green body, small lower wick)
- Enter long on close of reversal candle
- Stop: just below the band
- Target: upper Keltner band (1.5-2ร ATR move)
๐ Short Middle Band Rejection
- Intraday downtrend, price rejecting middle band on rallies
- Bearish candle at band
- Enter short on candle close, stop above band
- Target: lower Keltner band
Middle Band
Entry Zone
Outer Band
Target
๐ก Pro Tip
Keltner Channels work better than Bollinger Bands for trending scalps because they use ATR (volatility-adjusted) rather than standard deviation. In trending moves, BB can stay 'hugged' to price for extended periods; Keltner maintains a cleaner mean-band relationship.