Keltner Channel Strategy - Need help Coding

[Lone Wolf]

Hi,

Does anybody know if I can scan using TOS for stocks where the body of the candle is COMPLETELY above or below the upper/lower Keltner Channel (using length 20, and 2.25 ATR)?

I see there are criteria for Bollinger bands there, but I am looking to scan for stocks where the body is completely outside the Keltner channel.

Let me know.

Thanks!

 

[Lone Wolf]

can you edit your post and rewrite your rules to clarify a few things.

what does closes about mean?
...price closes about the


what does this mean? upper channel is a line. there is no close.
...Following the close of the upper channel,


... buy when price crosses back below the upper channel,


not sure on this, what is prior period?
and is equal to or below the value of the prior periods moving average value.

Just tried to clarify as best as possible with a picture.

let me know if that makes sense.

 

[floydddd]

by MA you mean the 20-period avg MA line? that's pretty much the way i've been trading recently but i do it visually, have not set it up as a strategy. yours varies from mine in several ways but over it, well, it's been working pretty well. be interested to see what results a coded strategy spits out, probably pretty ugly in a determined downtrend and not so great in a furious uptrend but in between those two, should be okay.

 

[Lone Wolf]

by MA you mean the 20-period avg MA line? that's pretty much the way i've been trading recently but i do it visually, have not set it up as a strategy. yours varies from mine in several ways but over it, well, it's been working pretty well. be interested to see what results a coded strategy spits out, probably pretty ugly in a determined downtrend and not so great in a furious uptrend but in between those two, should be okay.

yes, 20 pd MA line.

I am really just looking to create this for proof of validation. I would never just take the signals blindly.

 

[Lone Wolf]

Hey all,

Could somebody help me code a Keltner Channel indicator where the candles are just the normal green/red color and then when a candle closes outside an upper or lower band it is painted white?

 

[floydddd]

i do it fairly blindly -- ok a lot blindly -- and so far so good, just the swings between the bands, using 3x ETFs. use keltners set at 1, 2, and 3 and never buy above the 20EMA line.

 

[armybender]

Sure. It looks like you're only considering the bar "poking" through the channel and not the whole bar being outside, so this should work. If you wanted it to include the whole bar you'd have to flip-flop the high and low. Otherwise this will work for you. I'm using the default Keltner Channel study from ToS.

declare weak_volume_dependency;

input displace = 0;
input factor = 1.5;
input length = 20;
input price = close;
input averageType = AverageType.SIMPLE;
input trueRangeAverageType = AverageType.SIMPLE;

def shift = factor * MovingAverage(trueRangeAverageType, TrueRange(high, close, low), length);

def average = MovingAverage(averageType, price, length);

plot Avg = average[-displace];
Avg.SetDefaultColor(GetColor(1));

plot Upper_Band = average[-displace] + shift[-displace];
Upper_Band.SetDefaultColor(GetColor(8));

plot Lower_Band = average[-displace] - shift[-displace];
Lower_Band.SetDefaultColor(GetColor(5));

AssignPriceColor(
    if high > Upper_Band or low < Lower_Band then Color.WHITE
    else Color.CURRENT
);

 

[Lone Wolf]

Hey all, I am looking to try to code this Keltner Channel strategy but I've ran into a few issues.

Here is what I am looking to code.

Keltner channel settings, 20 period, 2.25 factor, exponential
MACD Settings - 3,10,16, Simple MA

Rules for buy entries

1. price closes about the upper Keltner channel
2. Following the close of the upper channel, buy when price crosses back below the upper channel, and the MACD signal line is less than 0.
3. Exit at the most recent pivot high.

https://imgur.com/a/BgdwtQN

The above link shows an example of an ideal trade. Price breaks above the upper Keltner, comes back below and MACD signal line is less than zero. Once entered, look to exit at the most recent high.