Keltner Channels

EMA(20) ±1.5×ATR channels — equity volatility.

What are Keltner Channels?

Keltner Channels use EMA and ATR to create volatility-based bands. Unlike Bollinger Bands (standard deviation), KC uses ATR for smoother bands.

Parameters (20, 1.5)

  • Upper Band: EMA + 1.5×ATR
  • Middle Band: 20-period EMA
  • Lower Band: EMA - 1.5×ATR

Interpretation

  • Bullish: Price above middle, near upper
  • Bearish: Price below middle, near lower
  • Support/Res: Bands act as dynamic S/R

Trading Signals

  • Buy: Pullback to middle in uptrend
  • Sell: Rally to middle in downtrend
  • KC squeeze with BBands = breakout setup

Close Price Overlay

Close outside KC = strong trend; inside = consolidation. Toggle the price overlay via the chart icon in the app bar.

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