K Ch Signal AM

The presented indicator gives signals about the price exiting the Keltner channel, as well as about the price returning to the channel.

Keltner channel is a technical indicator consisting of two bands above and below the moving average of the price indicator, the width of which is determined as a share of the average price change over the period. The author of this technique is Chester W. Keltner, who published it in his book How To Make Money in Commodities in 1960. The Keltner channel has undergone extensive research and modifications, in particular, an exponential moving average was used as a smoothing line, and ATR was used as a band width. The presented indicator uses just such a modification of the channel.