Turtle Channel

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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.

INVESTOPEDIA EXPLAINS '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 are the best technical indicators to complement a Turtle Channel?

    Learn how two additional technical indicators can be used to complement a trading strategy designed for use with the turtle ...
  2. What is the Turtle Channel formula and how is it calculated?

    Learn the simple formula for creating the turtle channel indicator and understand how the turtle channel is used by traders ...
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