KeltnerChannel (Function)

The KeltnerChannel function calculates the Keltner Channel value.

Syntax

KeltnerChannel(Price, Length, NumATRs)

Returns (Double)

A numeric value containing the Keltner Channel value for a specified bar.

Parameters

Name	Type	Description
Price	Numeric	Specifies which bar value (price, function, or formula) to average.
Length	Numeric	Sets the period of time (in bars) over which an average will be taken.
NumATRs	Numeric	Sets a multiplier to be used in the calculation. Enter a positive value for the upper band and negative value for the lower band.

Usage

Keltner Channel is a channel that is based on a multiple (NumATRs) of average true ranges above and below a moving average. KeltnerChannel is most commonly used with studies or strategies that measure or take advantage of market volatility. It is similar in concept to the BollingerBand function.

Example

Assigns to Value1 the upper band of a Keltner Channel that is based on the Close, a 10 bar average, and a factor of 2.5.

Value1 = KeltnerChannel(Close, 10, 2.5)

Assigns to Value2 the lower band of a Keltner Channel that is based on the Close, a 20 bar average, and a factor of -1.5.

Value2 = KeltnerChannel(Close, 20, -1.5)

Additional Example

If you wanted to create an analysis technique that would alert you when the Close of a bar is higher than the value of the upper Keltner Channel using the closing prices over the last 14 bars and NumATRs of 2.5, you could use the following syntax:

Plot1(KeltnerChannel(Close, 14, 2.5), "KChannel");

If Close > Plot1 Then
Alert("Close is above the upper Keltner Band");