Bollinger Band & Keltner Channel

The Keltner Channel also contracts and expands with volatility but is not as volatile as

the Bollinger Bands. Keltner Channels serve as a guide for setting trade entries and
exits. The Keltner Channel help identify overbought and oversold levels relative to a
moving average, especially when the trend is flat.
 It can also provide clues for new trends.
Think of the channel like an ascending or descending channel, except it automatically
adjust to recent volatility and isn’t made up of straight lines.

The channel top typically holds as dynamic resistance while the channel bottom

serves as a dynamic support.

The general concept is that the farther the closing price is from the average closing
price, the more volatile a market is deemed to be, and vice versa. That is what
determines the degree of contraction or expansion of a Bollinger Band or a Keltner
Channel.

The squeeze
When the bands come close together, constricting the moving average, it is called a
squeeze. A squeeze signals a period of low volatility and is considered by traders to be
a potential sign of future increased volatility and possible trading opportunities.
Conversely, the wider apart the bands move, the more likely the chance of a decrease
in volatility in the future and the greater the possibility of exiting a trade
Approximately 90% of price action occurs between the two bands. When the bands
squeeze together, it usually means that a breakout is imminent. Expanding volume on a
breakout is a sign that traders are betting with their money that the price will continue to
move in the breakout direction.
Setting up and defining the squeeze in above document
Bullish and bearish scenario in above document as well.

We can change the standard deviation settings to filter the trends,

 2% standard deviation will cover 95% of market action (movement)
1% standard deviation will cover 68% of market action (movement)
How to Trade Breakouts Using Keltner Channels

If the price is above upper line of keltner channel which is ATR than trend will most
probably rise and if candles are breaking/closing above the upper ATR price will stay up
or rise.
If the price of commodity is below lower keltner channel which is ATR trend will be
descending and if candles are breaking at lower ATR than prices will stay down and
downtrend will occur.
This strategy is designed to catch a move as early as possible.

Mostly the price will stay between upper and lower lines. Either way it should be worked
with Fib retracements.
Now murdex is saying based on its squeeze and algorithm

Buy when:

 Upper Bollinger < Upper Keltner [5 Candles Ago]

 Lower Bollinger > Lower Keltner [5 Candles Ago]
 Closing Price > Upper Bollinger

Sell when:

 Upper Bollinger < Upper Keltner [5 Candles Ago]

 Lower Bollinger > Lower Keltner [5 Candles Ago]
 Closing Price < Lower Bollinger

Use a stop loss of 10% to prevent loses due to any false signals generated.

My Observation:
The strategy of using Bollinger Bands and RSI is to watch for moments when prices hit the
lower band and RSI hits the oversold region (Below 30). This would be a good entry price to
buy. If you are looking to sell, you can wait for prices to hit the upper band and RSI hits the
overbought region (above 70).
If the price hits the upper band of Kelter channel and RSI is 58% +, take a short position for 2
minutes.