Keltner Channels: The ATR-Based Trend Envelopes
The Breakdown: Similar to Bollinger Bands, but uses ATR instead of standard deviation to set the channel width, making it more stable.
Why Traders Love It: It stays much smoother than Bollinger Bands and is better at identifying “Trend Channels” rather than just volatility spikes.
Pro-Tips for Success: A close outside the upper Keltner Channel often signals a strong momentum breakout rather than an overbought condition.