Indicator - Keltner Channel

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Definition Keltner Channel



The middle line of a Keltner Channel is simple a n-day moving average applied to typical price. Typical price is calculated in the following way:
Typical price = (high+low+close)/3

The upper and lower lines of the channel are determined by adding or subtracting a simple moving average of daily range (daily high - daily low) from the middle line. As a result, the width of the keltner channel depends on daily trading volatility.

Interpretation Keltner Channel



If price closes above the upper line of the keltner channel, a bullish signal is given.\nIf price closes below the lower line of the keltner channel, a bearish signal is given.

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