Keltner Channels
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    Keltner Channels

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    Article summary


    Keltner Channels are volatility-based lines (upper and lower bands) placed above and below either side of an asset's price with Exponential Moving Average (EMA) as the middle line. The distance between the bands and the moving average is equal to the Average True Range (ATR) indicator's value multiplied by 2 by default. The Keltner Channels are used to determine the direction of the trend: price that reaches the upper band gives the bullish signal, while price reaching the lower band gives the bearish one.

    Keltner Channel Middle Line = EMA
    Keltner Channel Upper Band = EMA + 2 * ATR
    Keltner Channel Lower Band = EMA - 2 * ATR

    where:
    EMA – Exponential Moving Average
    ATR – Average True Range

    Kairi Relative IndexKeltner Channels

    INPUTS

    Price
    The following data sources are available for calculation of the EMA:
    • Open. The Open Price of every bar for the specified period.
    • High. The High Price of every bar for the specified period. 
    • Low. The Low Price of every bar for the specified period.
    • Close. The Close Price of every bar for the specified period. 
    • Median. The Median Price of every bar for the specified period - (High + Low) / 2.
    • Typical. The sum of High, Low, and Close prices divided by 3 for the specified period - (High + Low + Close) / 3.
    • OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
    • Volume. The Close Price of every bar + average volume of an asset for the specified period.
    InputDescription
    LengthThe number of bars used to calculate EMA
    FactorThe coefficient used to calculate ATR
    Average
    The following Moving Average types are available for calculations:
    • Simple. Simple Moving Average (SMA) is used in calculation.
    • Wilders. Wilders Smoothing is used in calculation.
    • Weighted. Weighted Moving Average (WMA) is used in calculation.
    • Exponential. Exponential Moving Average (EMA) is used in calculation. 

    PLOTS

    The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

    PlotDescription
    LowerBandThe lower channel plot
    MidLineThe average plot
    UpperBandThe upper channel plot
    Color

    Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

    Palette

    To create a custom color:

    1. Clickto open the color picker
    2. By using the slider at the bottom, adjust the main color
    3. Then, set a shade for the main color on the palette

    The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

    Weight
    Change the value (in px) to adjust the thickness of the plot.
    Type
    The following plot types are available:
    • Linear. The plot is displayed as a line.
    • Column. The plot is displayed as a histogram.
    • DifferenceThe plot is displayed as a line which represents the difference between High and Low prices of the bar.
    • PointsThe plot is displayed as points.
    • Text above candleThe plot is displayed as the price labels above candles on the chart.
    • Text below candleThe plot is displayed as the price labels below candles on the chart.
    • Triangle above candleThe plot is displayed as triangles above candles on the chart.
    • Color candle. The candles on candle-type charts are highlighted with specified colors.

    OVERLAYING

    Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

    Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE