Turtle Channel

DEFINITION of 'Turtle Channel'

A trading band created by plotting the highest and lowest prices of an asset over a certain time period around the price of that asset.

BREAKING DOWN 'Turtle Channel'

This indicator is interpreted in a similar manner to other banded indicators such as Keltner channels and moving average envelopes. Some investors use a move toward the upper band to signal an increased likelihood that the security is becoming overbought, and a move to the lower band to signal that a security may be oversold. Other investors believe that a move beyond the upper band of the channel is an indication that upward momentum is increasing, and a move below the lower band is an indication that downward momentum is building.

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RELATED FAQS
  1. What is a common strategy traders implement when using a Turtle Channel?

    Discover the specific trading strategy originally created by Richard Donchian to be used in conjunction with the turtle channel ... Read Answer >>
  2. How can I use Bollinger Bands® to spot options trading opportunities?

    Learn about different strategies using Bollinger Bands, and understand how the Bollinger Band is calculated using standard ... Read Answer >>
  3. What is the difference between Moving Average Envelopes and Bollinger Bands®?

    Read about the differences between how Bollinger Bands and moving average envelopes are constructed and what that means for ... Read Answer >>
  4. What is a common strategy traders implement when using Moving Average Envelopes?

    Read about some of the most common trading strategies and signals you can use with moving average envelopes on an asset's ... Read Answer >>
  5. What are the main differences between STARC Bands & Bollinger Bands®?

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  6. Why are STARC Bands important for traders and analysts?

    Learn what STARC bands are and how the rationale behind their construction provides helpful indications for traders and market ... Read Answer >>
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