Keltner Channel
📈 Investing
intermediate

Quick Definition

Keltner Channel is a technical analysis indicator used to identify trend direction and volatility in the price of an asset by creating bands around an exponential moving average.

Formula

Middle Line: 20-period EMA\nUpper Band: Middle Line + (2 * ATR(10))\nLower Band: Middle Line - (2 * ATR(10))

Examples

  • 1A trader uses Keltner Channels to determine overbought and oversold conditions in the stock market.
  • 2An investor applies Keltner Channels to a cryptocurrency chart to identify potential breakout points.
  • 3A financial analyst uses Keltner Channels to compare the volatility of different stocks before making investment recommendations.

Tags

technical analysistradingstocksforexcryptocurrencies
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025