The Keltner Channel is a volatility channel that lets you recognize the direction and strength of trends. This channel is very similar to the Bollinger Bands, except that it uses the Average True Range instead of the standard deviations to determine the position of the upper and lower levels.
Today’s video offers a comparison between the Keltner Channel and the Bollinger Bands. By watching it, you’ll learn:
– What the Keltner Channel is and how to calculate it
– What the graphic differences are between the Keltner Channel and the Bollinger Bands (although they are very similar, there are cases when their behavior differs significantly)
– How the performance of a simple trading system based on the cross between price and channel changes depending on whether you use the Keltner Channel or the Bollinger Bands.
Enjoy!
