Keltner Channel


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.

BREAKING DOWN '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.

  1. Indicator

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  2. Moving Average - MA

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  3. Bollinger Band®

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  4. Oversold

    1. A condition in which the price of an underlying asset has ...
  5. Overbought

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

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