Keltner Channels: Moving-Average Bands for Price and Volatility

Summary

This document introduces the Keltner Channel as a moving-average line surrounded by upper and lower bands. It describes the bands as the central moving average plus or minus a volatility measure, and compares the concept with Bollinger Bands, which use standard deviation. A period of 10 is shown in the parameter example, with a typical-price moving average as the center and a high-low range average used to set the band distance.

The document provides an indicator specification that returns the upper band, lower band, and center line. It does not explain trading entry or exit rules, demonstrate how to interpret channel breaks or touches, or present backtest evidence. The prose refers to Average True Range and a multiple of it, while the displayed calculation uses an average of high minus low without a visible multiplier; users should therefore verify the implementation details before relying on it. The remaining content concerns site privacy practices rather than trading.

Key ideas

• A Keltner Channel places upper and lower bands around a moving average.
• The description distinguishes Keltner volatility bands from Bollinger Bands based on their volatility measure.
• The example centers the channel on typical price and uses a period of 10.
• The displayed calculation and prose differ on the volatility input, and no trading rules or performance tests are given.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.