01 · Indicator · Keltner Channel
What is Keltner Channel?
The Keltner channel wraps an EMA with two bands set at a multiple of the ATR. Popularised by Chester Keltner then modernised by Linda Raschke.
Steadier than Bollinger, it helps spot strong trends and squeezes.
02 · Indicator · Keltner Channel
The calculation
Middle = EMA(N). Bands = EMA(N) ± m × ATR(N), common settings 20 and 2.
Since ATR measures true candle range, the channel reacts less to isolated spikes.
03 · Indicator · Keltner Channel
Reading the signals
A close outside the channel signals a strong trend. In ranges price swings between the bands.
When Bollinger Bands move inside Keltner, that is a squeeze.
04 · Indicator · Keltner Channel
Settings and combinations
Period and multiplier are adjustable in the Volatility group. It pairs well with: Bollinger Bands, ATR (Average True Range), Exponential Moving Average (EMA).
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Volatility group, then click Keltner Channel.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01Keltner or Bollinger?
Keltner is steadier; together they detect squeezes.
02What does a close outside mean?
A strong trend, usually better followed than faded.
03Which multiplier?
1.5 to 2 depending on the asset's volatility.