Keltner Bands Gold Analysis & Keltner Bands Signals

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

Keltner Channels are based on ATR technical indicator, the bands use ATR indicator values to draw the band lines.

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

How to Add Keltner Bands Indicator in Chart

Keltner Channels

Construction

Keltner Channels are similar to Bollinger Band except for the fact that Bollinger Bands use standard deviation technique/method to identify volatility and to draw the bands.

For the keltner channels instead of using standard deviation, the average true range ATR measure of the price volatility is used.

This gold indicator is an n number of periods exponential moving average of the closing price. These channels are developed & created by

Adding (for the upper line) and

Subtracting (for the lower line)

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

Trading Analysis and Generating Signals

This gold indicator can be transacted in much the same way as the Bollinger Bands

Continuation Signals

When price moves & heads outside the bands then a continuation of the current gold trend is implied. A buy trading signal is when the channels are moving upwards and sell signal is when the channels are heading downward

Keltner Bands Gold Indicator - MT4 Keltner Band Indicator