Keltner channel

Keltner channels are technical analysis tools consisting of volatility-based bands that are placed on either side of an asset’s price and can help determine the direction of a trend, much like Bollinger bands.

Chester Keltner invented the Keltner channel in the 1960s. The original formula used simple moving averages (SMAs) and the high and low price range to calculate the bands. In the 1980s, a new formula was introduced that used the Average True Range (ATR).