Keltner Channels + Momentum / Owl of Profit

Keltner Channels + Momentum Strategy

This strategy combines Keltner Channels and the Momentum indicator to identify potential breakout trades and determine market strength.

Features:
Keltner Channels:

Middle Line: Exponential Moving Average (EMA) of the close price.
Upper and Lower Bands: Calculated by adding or subtracting a multiple of the Average True Range (ATR) from the EMA.
Default length: 20 periods.
Default multiplier: 1.5.
Momentum Indicator:

Measures the rate of price change over a specified period.
Default length: 14 periods.
A positive momentum indicates bullish strength, and a negative momentum indicates bearish strength.
Entry and Exit Logic:
Long Condition:

Price crosses above the upper Keltner Channel.
Momentum is greater than 0 (indicating upward strength).
Short Condition:

Price crosses below the lower Keltner Channel.
Momentum is less than 0 (indicating downward strength).
Exit Logic:

For Long Positions: Exit when the price crosses below the middle Keltner Channel or momentum falls below 0.
For Short Positions: Exit when the price crosses above the middle Keltner Channel or momentum rises above 0.
Visualization:
Keltner Channels: Upper (blue), middle (orange), and lower (blue) bands plotted on the chart.
Momentum Indicator: Displayed as a line oscillating around 0.
Signals for long and short entries/exits are clearly marked on the chart.
This strategy is designed for traders who seek to capitalize on breakout opportunities while confirming trade strength using momentum.

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Happy trading!