Keltner Channels using EMA and ATR

Keltner Channels were introduced by Chester Keltner in his 1960 book How to Make Money in Commodities. They are similar to Bollinger Bands in that they consist of Upper and Lower bands at a certain distance from the Middle line.

Keltner's original definition was a 10 day SMA of the Typical Price for the Middle line with two times the 10 day SMA of the High-Low Spread applied to draw the Upper and Lower bands. Later Linda Bradford Raschke introduced a volatility based version as a 20 day EMA of the Close Price for the Middle line with two times the 10 day ATR applied to draw the Upper and Lower bands

When the Close moves above the Upper band this could indicate that the stock is overbought although it could also indicate a continuation of a strong uptrend. When the Close moves below the Lower band this could indicate that the stock is oversold although it could also indicate a continuation of a strong downtrend.

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Symbol Id Name Exchange Close Price Trade Date EMA (20) ATR (10)
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AAPLAPPLE INC.Nasdaq GS226.800010/4/2024225.70074.653310/4/2024NGSMEquity3571TechnologyConsumer Electronics8/31/2020
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