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FreeIndicators·ThinkorSwim

Keltner Wedges

Keltner channel wedges for trend and breakout context.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. Name it, click Apply, then OK, and it draws on your chart.

How to Use — WeTradePro Keltner Wedges

Keltner Channels with a color-shaded wedge cloud that reads trend at a glance and flags stretches to the outer edge. Educational, not advice.

What it is (one line)

ATR-scaled Keltner Channels around an EMA basis, with a green/red wedge cloud that shades the side price is holding (trend read) and dots when price tags the outer edge (reversion warning).

Who it's for & best timeframe

Trader typeHow you use itBest timeframeRecommended setting
Day traderRide the green/red wedge for trend, fade outer-edge tags intraday5-min – 15-minlength 20, atrMult 1.5
Swing traderBest fit — hold while the wedge stays one color, watch edge tags for exitsDailylength 20, atrMult 2.0
Position traderUse the EMA basis hold as a long-term trend filterWeeklylength 20, atrMult 2.5

Best overall: Daily, `atrMult 2.0`. The wedge color is your trend; the outer-edge dots are your "don't chase" warning.

What you see (overlay on price)

  • Yellow line: EMA basis (the center).
  • Gray lines: upper and lower Keltner edges (basis ± ATR×mult).
  • Wedge cloud: green when price holds above the basis (trend up), red when below (trend down).
  • Dots: red at the bar's high when price tags the upper edge (stretched up). Green at the low when it tags the lower edge (stretched down).
  • Labels: current trend read and any edge tag.

How to trade it (the core play)

  1. Trend with the wedge color — green cloud = look for longs, red = look for shorts.
  2. Pullback entries: in a green wedge, buy dips back toward the yellow basis; stop below the lower edge.
  3. Don't chase the edge: a red dot at the upper edge in an extended move = wait; the snap toward the basis is near.
  4. Trend exit: when price closes through the basis and the wedge flips color.
  5. Reversion scalp (counter-trend, advanced): fade an outer-edge tag back to the basis, tight stop beyond the edge.

Settings (inputs)

  • length (20) — EMA basis period.
  • atrMult (2.0) — channel width in ATRs. Wider = fewer edge tags, looser trend.
  • atrLength (20) — ATR lookback for channel width.

Best on

  • Trending, liquid names and ETFs: SPY, QQQ, AAPL, NVDA, sector ETFs. Works in both trend and range — the cloud tells you which.

Common mistakes

  • Chasing outer-edge tags in the trend direction — that's the dot's warning, not an entry.
  • Fading every edge tag — in strong trends price walks the edge; only fade when momentum is clearly fading.
  • Ignoring the basis flip — the wedge color change is the real trend-change tell.
  • Too tight an `atrMult` — constant edge tags, no signal.

Video script outline (for your WeTradePro tutorial)

  1. Hook: "Color tells you the trend. The edge tells you when to stop chasing."
  2. Show the green wedge in an uptrend, red in a downtrend.
  3. The basis pullback long inside a green wedge.
  4. Outer-edge dot = stretched = don't chase.
  5. The wedge flip as a trend-change signal.
  6. Advanced: the counter-trend reversion scalp to the basis.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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