GlossaryIntermediate
Keltner Channels
A moving average with bands plotted at a multiple of Average True Range, similar in concept to Bollinger Bands but built from ATR instead of standard deviation.
Keltner Channels, originally developed by Chester Keltner and later refined by Linda Raschke, consist of a moving average (typically an EMA) with upper and lower bands plotted at a set multiple of Average True Range away from it.
This is conceptually similar to Bollinger Bands, but because Keltner Channels are built from ATR rather than standard deviation, the two can behave somewhat differently, and are sometimes plotted together specifically to compare their relative widths. See Kaavon's dedicated Keltner Channels article for the full calculation.
Examples
- Keltner Channels and Bollinger Bands are sometimes plotted on the same chart together, since their differing calculations can disagree about current volatility.
- Because Keltner Channels are built from ATR, they generally respond to volatility changes more smoothly than Bollinger Bands' standard-deviation-based bands.