✓ Mathematical
◆ The PatternMiddle = EMA(20), Upper = EMA + 2×ATR(10), Lower = EMA − 2×ATR(10).
Keltner Channels — Chester Keltner (1960), modernized by Linda Raschke.
Middle = EMA(20)
Upper = EMA(20) + 2 × ATR(10)
Lower = EMA(20) − 2 × ATR(10)
Upper = EMA(20) + 2 × ATR(10)
Lower = EMA(20) − 2 × ATR(10)
vs. Bollinger Bands:
• Bollinger uses σ (standard deviation) → more jagged
• Keltner uses ATR → smoother channels
• TTM Squeeze: Bollinger Bands move INSIDE Keltner Channels → extreme low volatility → explosive move imminent
• Bollinger uses σ (standard deviation) → more jagged
• Keltner uses ATR → smoother channels
• TTM Squeeze: Bollinger Bands move INSIDE Keltner Channels → extreme low volatility → explosive move imminent
Pattern bridge: EMA ± ATR multiples blend trend and volatility — like confidence intervals around a moving center.