Keltner Channel

A volatility-based technical indicator consisting of three lines: an exponential moving average (EMA) in the center, with upper and lower bands set at a multiple of the Average True Range (ATR) above and below it. Originally developed by Chester Keltner in 1960 and later refined by Linda Bradford Raschke, the channel helps traders identify overbought and oversold conditions and spot breakouts. When combined with Bollinger Bands in a "squeeze" setup, Keltner Channels can signal periods of low volatility that often precede explosive price moves.