Keltner channels
An exponential average with a band of average true ranges either side.
Formula
Middle = EMA(20); Bands = Middle ± 2 × ATR(10)
How to read it
Bollinger Bands inside the Keltner channels is a common definition of a squeeze.
How to use it
Trend channels and breakout levels that follow the trading range rather than the spread of closes.
In Kereon
Charts · Superchart. Defaults: EMA 20, multiplier 2, ATR 10.
Also called: keltner, channel.