Cluenex
Log inStart free
Glossary · Pro tools

Keltner Channels

A channel around a 20-day EMA, set by the average daily range.

Why it matters

Like Bollinger Bands but built from the average true range instead of standard deviation, so it reacts less to single big days.

How to read it

Closes outside the channel show a strong push. When Bollinger Bands shrink inside Keltner Channels, traders call it a squeeze: a calm spell that often comes before a big move.

Also called: KC

Related

Bollinger BandsA band two standard deviations above and below the 20-day average price.Average true range (ATR)The average daily price range in dollars, counting gaps between days.

In the Cluenex app, this explanation opens next to every keltner channels figure, with the live reading for the stock you are looking at. Open it in Cluenex