What is Keltner_Cloud Indicator?
Keltner Cloud for MT5 plots a smoothed center line with upper and lower bands based on a volatility range. Together, the lines form a cloud that shows price location, band spacing, and the direction of the center line.
The center smoothing period, deviation smoothing period, deviation multiplier, applied price, and display settings are configurable. The cloud gives the chart a compact envelope reference without changing the underlying price bars.
How to Use It in Practice
Keltner Cloud places two envelope boundaries around the main chart. The upper and lower channel lines form the displayed Keltner structure, and the cloud can be compared with a separate oscillator when another perspective is needed.
- Read the upper and lower channel boundaries together with the candles between and outside them.
- Increase Factor which is used to apply the deviation to widen the channel; this also makes boundary crossings less frequent.
- Compare the cloud with an oscillator or other chart element when evaluating its endpoint behavior, because the channel alone is less informative there.
A smoothed center and volatility-adjusted boundaries appear together, the envelope settings are configurable, and the cloud provides a clear chart reference for price location.
MT5 Indicator Parameters
The screenshot above shows the default input parameters in the MT5 settings window.
| Parameter | Description |
|---|---|
| Number of the periods to smooth the center line | Defines how many bars are used to smooth the center line. More periods create a slower, more stable line. |
| Number of periods to smooth deviation | Sets how many periods are used to calculate the volatility/deviation from the center line. Affects the width of the cloud. |
| Factor which is used to apply the deviation | This is the multiplier for the deviation. Higher values will create a wider cloud, capturing more price action. |
| The center line applied price | Specifies which price to use for the calculation (e.g., Close, Open, High/Low average). |
| The center line smoothing method | Determines how the center line is smoothed. Common options are Simple, Exponential, etc. |
