Keltner Channels

  • Similar to Bollinger Bands, but instead of standard deviation, it uses the Average True Range (ATR) for the bands.

  • Formula:

    • Middle Line: Exponential Moving Average (EMA)

    • Upper Band: EMA + (Multiplier × ATR)

    • Lower Band: EMA - (Multiplier × ATR)

  • Use Case: Tracks volatility while being smoother than Bollinger Bands.

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