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    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.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The 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
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