Keltner Channels
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.
See also: Bollinger Bands, Envelope Theory
Chart courtesy of Prophet Financial Systems (www.prophet.net)