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Keltner Channel

Similar to Keltner Bands, the Keltner Channel is another indicator employed by traders to interpret market trends and volatility. Leveraging AmiBroker data feed, this AFL helps in assessing potential price movements within a defined channel.

//  Keltner Channels are similar to Bollinger bands in that they create an
//  envelope around prices in order to indicate oversold / overbought
//  conditions.
//  Bollinger Bands use standard deviation to measure volatility, while Keltner
//  channels use ATR (Average True Range).
//  Keltner Channels provide a smoother envelope, that may be easier to use.

// Keltner Channels are constructed similar to Bollinger Bands
// around a moving average +/- volatility.
// The difference is in the measurement of volatility. 
// Bollinger uses standard deviation. MA(Close,20) +/- #STDs
// Keltner uses ATR (Average True Range). MA(Close,20) +/- #ATRs
// Keltner channels may be easier to use for detecting oversold / overbought conditions

Length = 20; Num_ATRs = 2;
// Length and Num_ATRs parameters should be personalized for your preferred settings.

Mov_Avg = MA(C,Length);
KUP   = Mov_Avg + Num_ATRs * ATR(Length);
KDOWN = Mov_Avg - Num_ATRs * ATR(Length);

Plot (KUP,"KUP",1,1);
Plot (KDown,"Kdown",1,1);
Plot (Mov_Avg,"Mov_Avg",6,1);

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