What it does
Keltner Channels plot an envelope around a 20-period EMA at a multiple of Average True Range, typically 2 ATR above and below. Because the width is set by ATR rather than standard deviation, the bands expand and contract with volatility but more smoothly than Bollinger Bands. The result is a volatility-scaled channel centered on the short-term trend.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “Keltner Channels” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Trade trend rides: price closing repeatedly along the upper band signals a strong uptrend worth holding, with the EMA midline as the pullback buy zone.
- Treat closes outside the channel as momentum breakouts in trending markets rather than automatic fade signals.
- Fade channel extremes only in confirmed ranges, targeting the midline.
- Combine with Bollinger Bands for the squeeze setup: Bollinger Bands moving inside the Keltner Channel flags volatility compression before a big move.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| UseTrueRange | boolean | On | — |
| Length | number | 20 | 1–2000 |
| Mult | number | 1 | 0.1–10 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Upper | line | #2196F3 |
| Middle | line | #2196F3 |
| Lower | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Drag the indicator to its own pane from the legend ⋯ menu if it crowds the price chart.
- Double-click any of its lines to jump straight into the settings dialog.
- Save the configured chart as a study template (Indicators menu) to reapply this exact setup elsewhere.
Watch out for
- The same band touch means opposite things in trends and ranges, so the channel is unusable without first classifying the regime.
- Both the EMA center and ATR width lag, so the channel shifts late after sudden volatility changes.