Crypto Academy / S5W6 - Homework Summary [Advanced Level] - Trading Crypto with Keltner Channels

To everyone in the academy, compliments of the season to you and I hope you are having a great time. Last week, I delivered a lecture on Trading Crypto with Keltner Channels and I will be using this piece of article to give a summary of how things went in the entries received for the homework task. Let's get into it.

Keltner channels indicator is one of the technical tools used in the realm of technical analysis in the crypto ecosystem. It's basically a volatility-based type of technical analysis tool, which measures the volatility of an asset over time and presents its resulting analysis as channels. The channels consist of the upper band, middle line, and lower band.

The first version was earlier developed by Chester W.Keltner in the 1960s and was later reviewed by Linda Raschke to the current version used in technical analysis today. The components that made up the calculation of the channel bands and line are the EMA, Multiplier, and ATR, where the product of the multiplier and ATR is added to the EMA to place the Upper band of the channel, likewise, the product is subtracted from EMA to place the Lower band in the Keltner Channels.

That said, the indicator can be used to confirm the current trend, overbought/oversold, extract dynamic support/resistance, identify breakouts, and so on. In addition, it works identically with some other volatility-based indicators like Bollinger bands with slight differences. One distinctive difference between Keltner Channels and Bollinger bands is that the former uses Average True Range (ATR) (which results from highs and lows over time) to calculate its bands while the latter uses Standard deviation instead. Let's see the observations in entries received for the week.

This is a section where we would talk about a few things observed in the entries received for the homework tasks to see how students have nailed it and likewise, show some of the blunders that cost some in their entries.

I have proofreading as one of the components I gathered under the content structure. Just as it's important to spend much time presenting a homework task entry likewise, it's important to commit another 30mins to a few hours to proofread your articles over and over again. A lot of entries have typo errors predominantly in their articles and such occurrences take you away from the context because they meant another thing entirely different from the context.

The best homework task entry received for this lecture as regards touching every part as required for the task blew it off by making costly mistakes in her content's structure and that made the entry lose some mark. Do proofread your articles a couple of times to be sure all looks good, there are times even after some rounds of proofreading, there may still exist some errors but believe me, it's going to be infinitesimal as compared to someone that does it just once or not at all. To talk of clarity, make sure your paragraphs have something to say about the context and not take us on irrelevant trips. Kindly take note.

To discuss this section, how far you have understood the lecture and the homework task matters a lot before you start writing. If you write for writing sake, then you end up getting things mixed up, spend hours/days to be sure you understood the context first before you start writing your entry and that gives you the confidence to deliver greatly.

That said, you have now understood the context, do you comply with the requirement of the homework task? I've said it before and will repeat it, ensure that you check the questions again after finishing writing your homework task and ascertain that you have adequately attended to the questions and complied with all its requirements.

Quality of analysis of your answers is what makes your content stand out, if you choose to do it the way others did it then you remain in the same category with them. Explore and improve the quality of your answers to produce outstanding content. For example, I have requested that you give an illustrative example of how Keltner Channels are calculated, instead of giving a brief illustration, you can delve into the theory of how the components (EMA and ATR) are calculated outside of Keltner channels then you can further combine a chart to produce a great illustrative example of how they are used in calculating Keltner Channels.

A lot of entries followed the same mistake in this section of the homework task. There is a difference between periods and the actual value of EMA and ATR, the value of EMA and ATR in combination with the multiplier is used for calculating the position of the Channels. Unfortunately, many students used the periods for the calculation but that is wrong, the value of the components (EMA/ATR) over a certain period is to be used for the calculation. Kindly take note.

When I was stating the rules for trading breakouts with Keltner Channels, I highlighted that after the breakout (price close above/below the upper or lower bands), wait for the price to be supported at the middle line (EMA) in a buy position and to be resisted at the middle line (EMA) in a sell position, and after 2 - 3 candlesticks confirmation before making an entry. This rule is followed in the chart below.

Unfortunately, some homework tasks take their support of buy position from the lower band and resistance of sell position from the upper band, this doesn't work in line with the rules for trading breakouts with Keltner Channels, take note of that. Likewise, some users made buy/sell entries even when the asset is moving in the other direction, you should be patient to get the appropriate chart pattern that suits the strategy or use another asset entirely.

For the just concluded week 6 at the Academy, the topic "Trading Crypto with Keltner Channels" received homework task entries that amount to 37 and I have adequately attended to all, within 48 hours of each post's creation. Let's take a look at the performance table below to see what participants' data looks like for the week.

Excellent represents grades within 9 - 10, Very Good for grades within 8 - 8.9, Good for grades within 6 - 7.9, Average for grades within 5 - 5.9, Below Average for grades below 5, Plagiarized are the contents that are found to have been copied from another source without proper reference and Invalid are incomplete articles/Users Powering down/Insufficient SP for the Advanced level. For the just concluded week, no entries were below average and no invalid entry but a case of plagiarism was received (direct copy from the internet and spun). See the statistics in the charts below.

In conclusion, the percentage of excellent scores for week 6 in my lecture's homework task was so little (8%) as only 3 students scored 9 (the highest score in the homework task for the week) and that was due to some student's inconsistencies. It's not about how many hours/days you spent to get the homework task entry ready but how far have you ensured that you have mastered the requirement of the task. I appreciate students that committed quality time to produce quality content and for students that are lagging, you can become masters with consistency. Also, students can adopt using Grammarly to take care of likely grammatical errors. Thanks for the participation.