Keltner Channels are named in honor of Chester Keltner who created the “10-day Moving Average Trading Rule” in his 1960 book entitled “How to Make Money in Commodities”.

Keltner Channels are volatility-based envelopes set above and below an exponential moving average. This indicator is similar to Bollinger Bands, which use the standard deviation to set the bands. Instead of using the standard deviation, Keltner Channels use the Average True Range (ATR) to set channel distance.

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