Keltner Home No Frame Keltner Channel The Keltner Channel is based on the Average True Range and is sensitive to volatility.
Prices breaking through the bands often produce buy and sell signals.
As with all envelope or band systems, the probability is that price will remain within the envelope. When price breaks though the envelope, it can be taken as a signal to either buy or sell. When prices close above the top band , this often means a breakout in upward volatility to be followed by higher prices. When prices close below the bottom band , prices are expected to move lower. In a rising market the middle line, or 20 period EMA, should provide support.