top of page

20_Keltner Bands Exit

Ball Bounce_edited_edited.jpg

Using Keltner Bands for Strategic Exits


Setting Up Keltner Bands:

  • Foundation: Configure Keltner Bands around a 15-period Exponential Moving Average (EMA), with channels set at 1.5 standard deviations from the EMA. This setup offers insights into trend strength and volatility.


Exiting Beyond the Outer Bands:

  • Exit Strategy: Consider exiting positions, partially or entirely, when the price extends beyond the outer Keltner Bands. This often signals an overextended market, hinting at a potential reversal or momentum slowdown.

  • Retention Strategy: While locking in profits is wise, retaining a portion of your position allows for potential additional gains if the trend continues, leveraging market momentum.


Enhancing Position Management with Tactical Strategies:

Ball Bounce Strategy:

  • Utilizing Market Retracements: After exiting due to extended movements, use the "Ball Bounce" strategy during market retracements. This involves re-entering or adding to positions during temporary pullbacks, aligning with the overall trend.


Fade the Keltner Bands Strategy:

  • Navigating Market Congestion: During periods of market congestion within the Keltner Bands, consider the "Fade the Keltner Bands" strategy. Trade against minor reversals or bounces within the bands to capitalize on short-term price movements while maintaining your position.


Advantageous Position Filling:

  • Strategically adding to positions at favorable prices, whether through retracements with the "Ball Bounce" or counter-trend moves with the "Fade" strategy, improves the average entry price and profit potential while adhering to risk management principles.

NT8.jpg
bottom of page