The name given by the name of their author Chester Keltner, who first introduced the system of earnings for the 10-periodnoy moving average in his book 1960. «How to make money in commodity markets».
This price envelopes or bands, which are placed above and below the exponential moving average multiplied by its value on the value of the average True Range (ATR).
There is no doubt that this is a very interesting channels. In the first place because they ingeniously connected by two indicators: moving averages and the indicator ATR.
* The current maximum negative current minimum;
* Absolute value of: the current maximum negative previous closing;
* Absolute value of: the current minimum, minus the previous closing.
Upper Canal Keltnera = EMA (closure, x) + (m * ATR (y))
Lower Canal Keltnera = EMA (closure, x) - (m * ATR (y))
Where:
x = length (days) EMA
m = multiplier
y = length (days) to calculate the ATR
This is indeed a powerful and surprisingly simple system. It allows you to answer the constant question Trader: Where is the trend, but with Flat and earn money.
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