Keltner Channel

AAA

DEFINITION of 'Keltner Channel'

A volatility based 'envelope' indicator that measures the movement of stocks in relation to an upper and lower moving-average band.

INVESTOPEDIA EXPLAINS 'Keltner Channel'

This indicator, named after Chester W. Keltner, is used by sophisticated investors to predict the trend of the market. An overbuy occurs when prices move above the upper band, and an oversell occurs when prices move below the lower band.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Chartist

    An individual who uses charts or graphs of a security's historical ...
  3. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  4. Bollinger Band

    A band plotted two standard deviations away from a simple moving ...
  5. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  6. Oversold

    1. A condition in which the price of an underlying asset has ...
Related Articles
  1. Technical Indicators

    Discovering Keltner Channels and the ...

  2. Forex Education

    Capture Profits Using Bands And Channels ...

  3. Chart Advisor

    Traders Fight To Push Corn Prices Higher

  4. Trading Strategies

    How do traders identify key signals ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center