Keltner Channel + SMI 3-min with RVOL

This strategy is designed for active traders looking to capitalize on short-term price extremes in high-volume environments. Built on a 3-minute chart, it combines the precision of the Keltner Channel with the momentum insights of the Stochastic Momentum Index (SMI), while adding a volume-based filter to enhance the quality of trade signals.

The system aims to identify mean reversion opportunities by monitoring when price overextends beyond key volatility bands and aligns with deeply overbought or oversold momentum readings. However, it only triggers trades when relative volume is elevated, ensuring that signals are backed by significant market activity.

Long positions are initiated when price dips below the lower volatility band, momentum is deeply negative, and volume confirms interest.

Shorts are opened when price spikes above the upper band with overheated momentum and heavy participation.

Positions are exited once the momentum shifts back toward neutrality, helping to lock in gains on reversion.

The result is a tight, reactive strategy that avoids low-volume noise and aims to catch sharp reversals with strong participation. Ideal for SPY or other high-liquidity instruments, especially during peak market hours.