Episode – 3 (Kelter Channel)

keltner channel is Designed to identify price trends, breakouts, and potential reversals in the financial markets, Keltner Channels visually represent the average true range (ATR) of price movements. By creating a channel around a moving average, these channels help traders assess market volatility and predict future price movements. The exponential moving average (EMA) of a Keltner Channel is typically 20 periods, although this can be adjusted if desired. The upper and lower bands are typically set two times the average true range (ATR) above and below the EMA, although the multiplier can also be adjusted based on personal preference. Price reaching the upper Keltner Channel band is bullish while reaching the lower band is bearish. The angle of the Keltner Channel also aids in identifying the trend direction. The price may also oscillate between the upper and lower Keltner Channel bands, which can be interpreted as resistance and support levels.