Trading KST indicator with Keltner Channel Breakout on Bank Nifty

banknifty keltner channel kst indicator nifty stock market trading Apr 22, 2024

Bank Nifty had a sharp fall in last week but managed to climb back up retracing a portion of the fall.

Elliott wave counts are shown below along with KST and Keltner channel.

Bank Nifty 15 minutes chart:

In the above chart of Bank Nifty, we can see two important indicators that are focused on prices and momentum.

Keltner channel – This indicator is different than that of Bollinger Bands®. Bollinger Bands uses standard deviation to the mean whereas Keltner channel is derived using Average True Range (ATR). Both of the indicators have different ways of application.

In Keltner channel we can see that break above 47500 on 19th April which was the 1st break above the upper band of Keltner.

KST momentum – Breakout on Keltner channel was also accompanied by KST momentum indicator. KST momentum indicator broke above 0 line and also the signal line thereby giving strong confirmation that momentum is picking on upside.

From 47500 derived using the trade setup Bank Nifty already touched the high of 48140 on 22nd April. A move of more than 640 points using these two simple indicators.

In a nutshell, Keltner channel helps to understand if the size of candle is increasing which is suggesting a significant move and KST further provides confirmation of momentum.

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