Keltner Channel is volatility-based envelopes set above and below an exponential moving average. The indicator is named after its author Chester Keltner who first described his system based on the 10-period moving average in his 1960 book "How to make money in Commodities".
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.
Author: Nikolay Kositsin
Keltner Bands Technical Indicator