The Keltner Channel indicator represents a channel along the moving average, with the width defined by calculating the average true range on the period of the moving average.

This indicator can be applied for receiving signals, as well as a substitute for the Moving Average Envelopes indicator. Its advantage is the increased quality of channel width auto selection, which can be adjusted using the Size of channel in percent parameter.

Indicator Parameters

• Period of indicator - calculation period of the indicator
• Type of Keltner channel - indicator calculation type:
• Original - simple moving average based on typical price and trading range.
• Modified_1 - exponential moving average based on typical price and average true range.
• Modified_2 - exponential moving average based on closing price and average true range.
• Size of channel in percent - channel size in percents

Indicator signals

• Original methodology - signal using the original method
• Modified technique using a filter - signal using the modified method