Keltner Bands CFD Technical Analysis & Keltner Bands CFD Signals

Developed by Chester Keltner. Described in his book "How to Make Money in Commodities"

Keltner Bands are based on ATR indicator, the bands use ATR values to draw the bands lines.

These Bands form Channels that help to identify the CFD market trends using this simple volatility channel.

Keltner Bands

Construction

Keltner Channels are similar to Bollinger Bands except for the fact that Bollinger Bands use standard deviations method to determine the market volatility & to draw the bands.

For the keltner bands instead of using the standard deviations the average true range (ATR) measure of volatility is used.

This cfd indicator is an n number of periods exponential moving average of the closing cfds price. These bands are created by

Adding (for the upper line) and

Subtracting (for the lower line)

An (n period simple moving average of an n-period ATR) * an ATR multiplier.

CFDs Technical Analysis & How to Generate CFDs Signals

This cfd technical indicator can be traded in much the same way as a Bollinger Bands

Continuation Trading Signals

When cfds price moves outside the bands then a continuation of the current cfd trend is implied. A buy cfd signal is when the channels are moving upwards and sell cfd signal is when the channels are moving downwards

Continuation Buy Sell CFD Signals

Reversal CFD Signals - Double Tops and Double Bottoms

Tops and Bottoms made outside the bands followed by tops and bottoms made inside the Keltner channels indicate signal for reversals in the cfds trend.

Reversal CFD Signals

Ranging CFD Markets

In range markets a move which originates from one Keltner channel tends to go all the way to the other channel.