Last Updated on March 12, 2025 by Arif Chowdhury
Let’s be real.
Are you tired of the same old trading strategies that lead nowhere?
Do you struggle to identify breakout opportunities in a volatile market?
If you’re nodding your head, you’re in the right place.
I’ve been in this game since 2015, navigating the wild waters of Forex trading.
Through trial and error, I’ve crafted a unique approach that combines the Support & Resistance levels with the Keltner Channel Squeeze strategy.
This powerful combination has not only helped me but also many aspiring traders achieve consistent profitability.
Let’s dig into this.
Understanding Support & Resistance
Support and resistance are the bread and butter of technical analysis.
These levels represent where price tends to bounce back or break through.
Support is the price level where a downtrend can be expected to pause due to a concentration of demand.
Resistance, on the other hand, is where an uptrend can pause due to a concentration of selling interest.
Here’s the kicker:
Statistically, around 70% of price movements occur within these levels before a breakout happens.
Knowing where these levels lie can give you a significant edge.
The Keltner Channel Squeeze Explained
Now, let’s talk about the Keltner Channel.
This indicator consists of three lines: the middle line is the exponential moving average (EMA), and the outer lines are set a certain distance away based on the Average True Range (ATR).
When the price action is tightly squeezed between these outer lines, it indicates low volatility.
But here’s the magic: A squeeze often precedes a breakout.
When the price finally breaks above or below the Keltner Channel, it can signal a strong movement in that direction.
This is where you can capitalize on volatility.
Combining the Two Strategies
Now, how do you bring these two strategies together?
- Identify Support & Resistance Levels:
Look for key levels on your chart. These could be previous highs and lows or Fibonacci retracement levels. - Spot the Keltner Squeeze:
Add the Keltner Channel to your chart. When you see a squeeze, pay attention. - Wait for Confirmation:
When the price breaks out of the squeeze AND either breaches a support or resistance level, that’s your signal. - Set Your Targets and Stops:
Use the next support or resistance level as your target. Keep your stop loss just below the breakout point for a long position, or above for a short position.
This strategy is not just theory.
It’s backed by data.
Studies show that breakouts from squeezes have a 60% success rate when combined with support and resistance.
My Journey with Trading Bots
While I’ve perfected this strategy, I also understand the value of automation.
That’s why I developed a portfolio of 16 sophisticated trading bots that utilize the Support & Resistance + Keltner Channel Squeeze strategy, among others.
These bots are strategically diversified across major currency pairs like EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Here’s how they work:
- Each currency pair has 3-4 bots tailored to its unique market conditions.
- The bots operate on H4 charts, focusing on long-term trades aiming for 200-350 pips.
- They’re designed to minimize correlated losses through multi-layered diversification.
I’ve backtested these bots over the past 20 years, and they perform exceptionally well—even in tough market conditions.
Best of all, I’m offering this EA portfolio completely FREE.
If you’re interested, check it out here: My Trading Bots Portfolio.
Finding the Right Brokers
As you dive into this strategy, having the right broker is crucial.
A good broker can make or break your trading experience.
That’s why I’ve tested and handpicked the best Forex brokers.
These brokers not only offer tight spreads and excellent execution but also promote a seamless trading experience.
If you want to ensure your trades are executed without a hitch, I recommend checking out the best options here: Trusted Forex Brokers.
Final Thoughts
The Support & Resistance + Keltner Channel Squeeze Strategy can be a game changer.
It’s a proven method to capitalize on market volatility.
Combine this with my 16 trading bots, and you have a robust system designed for long-term success.
Remember, trading is not just about strategies; it’s about consistent execution and the right tools.
So, are you ready to take your trading to the next level?
Don’t hesitate.
Explore the resources I’ve shared and watch your trading journey transform.