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Keltner Channel Definition

A Keltner Channel is a technical indicator that uses an average true range to set bands above and below a moving average.

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What is a Keltner Channel?

It is similar to Bollinger Bands but uses average true range rather than standard deviation to measure volatility.

Traders use Keltner Channels to identify potential trend direction and overbought or oversold conditions.

Example of Keltner Channel

Price consistently trading near the upper Keltner Channel band may suggest a strong prevailing uptrend.

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