Trading using a combination of the Keltner Channels, DeMarker Indicator, and Relative Strength Index (RSI) can provide a robust framework for identifying high-probability entries and exits.
Open Account: http://pocketoptioncapital.com
Keltner Channels, based on the Average True Range (ATR), help traders identify volatility and trend direction by showing price movement relative to an upper and lower band around an exponential moving average (EMA). When prices touch or exceed these bands, it may signal overbought or oversold conditions, especially if confirmed by momentum indicators like the DeMarker or RSI.
The DeMarker Indicator focuses on identifying potential turning points in price by comparing the most recent high and low to the previous period's high and low. Readings above 0.7 indicate overbought conditions, while values below 0.3 suggest oversold levels. When a price breaks the upper Keltner Channel and the DeMarker shows overbought conditions, it can be a warning of a potential reversal or a good point to tighten stops. Conversely, if the price touches the lower band while the DeMarker is in oversold territory, it may suggest a buying opportunity—especially if there's confluence with RSI signals.
The RSI complements this setup by measuring the speed and change of price movements, typically signaling overbought conditions above 70 and oversold below 30. When all three indicators align—for instance, price touching the lower Keltner Channel, a DeMarker below 0.3, and RSI below 30—it strengthens the conviction in a potential reversal trade. Traders can use this convergence to enter trades with better timing and more confidence. It's crucial, however, to apply sound risk management, as indicators can give false signals, especially in strong trending markets.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
