Keltner Channel

This moving average system by Chester W. Keltner consists of an n-day moving average of the “typical price” (sometimes referred to as “average price,” ((H+L+C)/3), plotted with a channel formed by adding and subtracting an n-bar moving average of the high-low range to or from the moving average of the typical price. Thus, the width of the channel adjusts to market volatility.

Properties

Period: The number of bars in a chart. If the chart displays daily data, then period denotes days; in weekly charts, the period will stand for weeks, and so on. The application uses a default of 10.

Calculation

The study has two plots: a KCHigh and a KCLow.

The user parameter is the number of periods for the Moving Average of the Typical Price and the Moving Average of the High-Low Range (Period, default: 10)

For each bar:

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