Keltner Channel is volatility-based envelopes set above and below an exponential moving average.
The indicator consists of price envelopes or bands that are located above and below the exponential moving average by means of multiplying its value by the value of the Average True Range. The channels are surely quite interesting. Firstly, because they brilliantly join together two indicators: moving average and ATR.
Calculation method is as follows:
Keltner Upper Channel = MA (close, x) + (m * ATR (y))
Keltner Lower Channel== MA (close, x) - (m * ATR (y))
Indicator uses СMoving_Average class of the SmoothAlgorithms.mqh library. Working with this class was thoroughly described in the article "Averaging Price Series for Intermediate Calculations Without Using Additional Buffers".
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/399
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