Keltner channels help you identify market trends. Keltner channels compare today A Keltner channel study consists of a moving average and two channel lines. The channel lines are drawn by adding to and subtracting from the current moving average value the product of a constant multiplied by the average true range of each bar. Formula: Center Line: Where: CL = center line EAVG = exponential moving average n = number of bars P = price And: Average True Range: Where: ATR = average true range R = range n = number of bars H = high L = low And: Upper Channel Line: Where: UP = upper channel value CL = center line ATR = average true range C = constant And: Lower Channel Line: Where: DN = lower channel value CL = center line ATR = average true range C = constant see, Chester W. Keltner, How to Make Money in Commodities, Kansas City, MO: The Keltner Statistical Service, 1960; see also, Perry J. Kaufman, The New Commodity Trading Systems and Methods, New York: John Wiley & Sons, 1987.Keltner Channel