Keltner Channel Metatrader Indicator

The Keltner Channel is based on the Average True Range and is sensitive to volatility. It may be used in place of standard deviation (Bollinger) bands or percentage envelopes.

The Keltner Channel is made up of two bands plotted around an Exponential Moving Average (EMA), usually the 20-day EMA.


Prices breaking through the bands often produce buy and sell signals. The indicator was originally developed by Chester Keltner and later modified by Linda Raschke to use an average true range (ATR) calculated over 10 periods.

Indicator Trade Signals

• When prices close above the plus band, it is a signal of strength and rising prices
• When prices close below the negative band, a signal that prices will drop is indicated
• Signals stay in effect until the prices close across the opposite band. This should often be tempered, however, with the use of other indicators to provide better exit opportunities.

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