# 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.