Guidebook No. 5 of the Samxon Market Indicator Series. An 11-page PDF guide by Paul Samson (Samxon.ca).

Keltner Channels look like Bollinger Bands at first glance, but they measure volatility differently. By using the Average True Range instead of standard deviation, they create a smoother, steadier channel that is especially good at showing trend strength, and that becomes a powerful tool when laid alongside Bollinger Bands.

Inside:

• How the channel and the ATR are calculated
• Chester Keltner’s original 1960 design and Linda Bradford Raschke’s modern version
• How Keltner Channels differ from Bollinger Bands
• Settings, and five setups including the Squeeze, where Bollinger Bands contract inside the Keltner Channel
• A worked example that follows the channel through a full cycle

The central idea: because the channel is steady, a close outside it is a sign of trend strength rather than overextension, and the loss of the middle line marks the turn.

Instant PDF download. For educational purposes only; not financial advice.