Keltner Channels (KC)
Keltner channels: an EMA basis with bands a multiple of the average true range, an envelope for trend and volatility.
How to read it
- Closes above the upper band show strong upside momentum; below the lower band, strong downside.
- In a trend, pullbacks to the basis are often bought or sold.
- Bollinger Bands inside Keltner channels is a common squeeze signal.
Key settings
- Period 20, multiplier 2, ATR period 10, source close.
- Exponential basis on (off = SMA); band style Average True Range, True Range or Range.
Good to know
- Drawn on the price pane, over the candles.