Keltner Channel
📈 Investing
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
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Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025