Originally developed by Chester Keltner and later modified by Linda Raschke, Keltner Channels, also known as Keltner Bands are a volatility-based technical indicator. The Channels are composed of two bands plotted around an Exponential Moving Average of the data for a given period and are they are calculated by adding or subtracting twice the average true range from the moving average.
While similar to Bollinger Bands®, Keltner Channels differ in that they represent volatility using the high and low, instead of the standard deviation of one field.
