Keltner ATR Band

Keltner ATR Band is a powerful VertexFX client side VTL indicator that gives excellent entry and exit signals for trade reversals. The Keltner ATR bands are based on Simple Moving Average (SMA), Average True Range (ATR) and the concept of Keltner Channels (KC).

The concept behind this indicator is that it provides a dynamic support and resistance level when the price is trending. When the price moves above the upper band and closes below, it implies that the uptrend has lost strength and a reversal is imminent. Similarly, when the price falls below the lower band and then closes above it, it implies that the downtrend has lost strength and a reversal is imminent.

At first step we calculate the Simple Moving Average (SMA) based on the MA_PERIOD bars. In second step we calculate the Average True Range (ATR) based upon the MA_PERIOD bars. In third step the Average True Range is multiplied by the ATR_MULT multiplier. The upper band is calculated by adding the ATR product calculated in third step to the SMA calculated in the first step. The lower band is calculated by subtracting the ATR product calculated in the third step from the SMA calculated in the first step.

Buy: Place Buy position when the candle closes above the lower band from below.
Do not place Buy position if candle has gap-up opening.
Stop Loss can be placed below the nearest swing low.

Sell: Place Sell position when the candle closes below the upper band from below.
Do not place Sellposition if candle has gap-up opening.
Stop Loss can be placed above the nearest swing low. 

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:ProgramDataVertexFX Client Terminals”Company name”VTL10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.