Keltner Channer

The Keltner Channel is a mobile indicator that uses a Moving Averages to create a band of values ​​where the price should always fall. These upper and lower bands adapt to changes in volatility using the Average True Range. The Keltner channel is used to signal price break, to highlight a trend and to give overbought and oversold readings.
There are many variations for calculating the Keltner channel, but in general a 10 or 20 bar moving average is used and the channel is calculated using the typical price ((HIGH + LOW + CLOSE) / 3). This data is used to construct the midline. Starting from this value, a period of time is calculated, such as the 10 or 20 bars mentioned above, and multiplied by a multiple, for example 1.5. The number that comes from this calculation is used to be then added to the median line in order to form the upper band of the Keltner Channel, while it is subtracted from the midline value to form the lower band of the Keltner Channel.
The classical interpretation of the Keltner Channel is the breaking of the price outside the channel itself, that is, there is a BUY signal when the price closes above the upper band, while there is a SELL signal when the price closes below the lower band.