Keltner Channel Width Oscillator (KingThies)Definition
The Keltner Channel Width oscillator is a technical analysis indicator derived originally from the same relationship the Bollinger Band Width indicator takes on Bollinger Bands.
Similar to the Bollinger Bands, Kelts measure volatility in relation to price, and factor in various range calculations to create three bands around the price of a given stock or digital asset. The Middle Line is typically a 20 Day Exponential Moving Average while the upper and lower bands highlight price at different range variations around its basis. Keltner Channel Width serve as a way to quantitatively measure the width between the Upper and Lower Bands and identify opportunities for entires and exits, based on the relative range price is experiencing that day.
Calculation
Kelt Channel Width = (Upper Band - Lower Band) / Middle Band
More on Keltner Channels
Keltner channel was first described by a Chicago grain trader called Chester W. Keltner in his 1960 book How to Make Money in Commodities. Though Keltner claimed no ownership of the original idea and simply called it the ten-day moving average trading rule, his name was applied by those who heard of this concept through his books.
Similarly to the Bollinger Bands, Keltner channel is a technical analysis tool based on three parallel lines. In fact, the Keltner indicator consists of a central moving average in addition to channel lines spread above and below it. The central line represents a 10-day simple moving average of what Chester W. Keltner called typical price. The typical price is defined as the average of the high, low and close. The distance between the central line and the upper, or lower line, is equivalent to the simple moving average of the preceding 10 days' trading ranges.
One way to interpret the Keltner Channel would be to consider the price breakouts outside of the channel. A trader would track price movement and consider any close above the upper line as a strong buy signal. Equivalently, any close below the lower line would be considered a strong sell signal. The trader would follow the trend emphasized by the indicator while complementing his analysis with the use of other indicators as well. However, the breakout method only works well when the market moves from a range-bound setting to an established trend. In a trend-less configuration, the Keltner Channel is better used as an overbought/oversold indicator. Thus, as the price breaks out below the lower band, a trader waits for the next close inside the Keltner Channel and considers this price behavior as an oversold situation indicating a potential buy signal. Similarly, as the price breaks out above the upper band, the trader waits for the next close inside the Keltner Channel and considers this price action as an overbought situation indicating a potential sell signal. By waiting for the price to close within the Channel, the trader avoids getting caught in a real upside or downside breakout.
스크립트에서 "KELTNER"에 대해 찾기
Polynomial Regression Keltner Channel [ChartPrime]Polynomial Regression Keltner Channel
⯁ OVERVIEW
The Polynomial Regression Keltner Channel [ ChartPrime ] indicator is an advanced technical analysis tool that combines polynomial regression with dynamic Keltner Channels. This indicator provides traders with a sophisticated method for trend analysis, volatility assessment, and identifying potential overbought and oversold conditions.
◆ KEY FEATURES
Polynomial Regression: Uses polynomial regression for trend analysis and channel basis calculation.
Dynamic Keltner Channels: Implements Keltner Channels with adaptive volatility-based bands.
Overbought/Oversold Detection: Provides visual cues for potential overbought and oversold market conditions.
Trend Identification: Offers clear trend direction signals and change indicators.
Multiple Band Levels: Displays four levels of upper and lower bands for detailed market structure analysis.
Customizable Visualization: Allows toggling of additional indicator lines and signals for enhanced chart analysis.
◆ FUNCTIONALITY DETAILS
⬥ Polynomial Regression Calculation:
Implements a custom polynomial regression function for trend analysis.
Serves as the basis for the Keltner Channel, providing a smoothed centerline.
//@function Calculates polynomial regression
//@param src (series float) Source price series
//@param length (int) Lookback period
//@returns (float) Polynomial regression value for the current bar
polynomial_regression(src, length) =>
sumX = 0.0
sumY = 0.0
sumXY = 0.0
sumX2 = 0.0
sumX3 = 0.0
sumX4 = 0.0
sumX2Y = 0.0
n = float(length)
for i = 0 to n - 1
x = float(i)
y = src
sumX += x
sumY += y
sumXY += x * y
sumX2 += x * x
sumX3 += x * x * x
sumX4 += x * x * x * x
sumX2Y += x * x * y
slope = (n * sumXY - sumX * sumY) / (n * sumX2 - sumX * sumX)
intercept = (sumY - slope * sumX) / n
n - 1 * slope + intercept
⬥ Dynamic Keltner Channel Bands:
Calculates ATR-based volatility for dynamic band width adjustment.
Uses a base multiplier and adaptive volatility factor for flexible band calculation.
Generates four levels of upper and lower bands for detailed market structure analysis.
atr = ta.atr(length)
atr_sma = ta.sma(atr, 10)
// Calculate Keltner Channel Bands
dynamicMultiplier = (1 + (atr / atr_sma)) * baseATRMultiplier
volatility_basis = (1 + (atr / atr_sma)) * dynamicMultiplier * atr
⬥ Overbought/Oversold Indicator line and Trend Line:
Calculates an OB/OS value based on the price position relative to the innermost bands.
Provides visual representation through color gradients and optional signal markers.
Determines trend direction based on the polynomial regression line movement.
Generates signals for trend changes, overbought/oversold conditions, and band crossovers.
◆ USAGE
Trend Analysis: Use the color and direction of the basis line to identify overall trend direction.
Volatility Assessment: The width and expansion/contraction of the bands indicate market volatility.
Support/Resistance Levels: Multiple band levels can serve as potential support and resistance areas.
Overbought/Oversold Trading: Utilize OB/OS signals for potential reversal or pullback trades.
Breakout Detection: Monitor price crossovers of the outermost bands for potential breakout trades.
⯁ USER INPUTS
Length: Sets the lookback period for calculations (default: 100).
Source: Defines the price data used for calculations (default: HLC3).
Base ATR Multiplier: Adjusts the base width of the Keltner Channels (default: 0.1).
Indicator Lines: Toggle to show additional indicator lines and signals (default: false).
⯁ TECHNICAL NOTES
Implements a custom polynomial regression function for efficient trend calculation.
Uses dynamic ATR-based volatility adjustment for adaptive channel width.
Employs color gradients and opacity levels for intuitive visual representation of market conditions.
Utilizes Pine Script's plotchar function for efficient rendering of signals and heatmaps.
The Polynomial Regression Keltner Channel indicator offers traders a sophisticated tool for trend analysis, volatility assessment, and trade signal generation. By combining polynomial regression with dynamic Keltner Channels, it provides a comprehensive view of market structure and potential trading opportunities. The indicator's adaptability to different market conditions and its customizable nature make it suitable for various trading styles and timeframes.
Enhanced Keltner TrendThe Enhanced Keltner Trend (EKT) indicator builds on the classic Keltner Channel, using volatility to define potential trend channels around a central moving average. It combines customizable volatility measures moving average, giving traders flexibility to adapt the trend channel to various market conditions.
How It Works?
MA Calculation:
A user-defined moving average forms the central line (or price basis) of the Keltner Channel.
Channel Width:
The width of the Keltner Channel depends on market volatility.
You can choose between two methods for measuring the volatility:
ATR-based Width: Uses the Average True Range (ATR) with customizable periods and multipliers.
Price Range Width: Uses the high and low price range over a defined period.
Trend Signal:
The trend is evaluated by price in relation to the Keltner Channel:
Bullish Trend (Blue Line): When the price crosses above the upper band, it signals upward momentum.
Bearish Trend (Orange Line): When the price crosses below the lower band, it signals downward momentum.
What Is Unique?
This Enhanced version of the Keltner Trend is for investors who want to have more control over the Keltner's channels calculation, so they can calibrate it to provide them more alpha when combined with other Technical Indicators.
Use ATR: Gives the user the choice to use the ATR for the channel width calculation, or use the default High - Low over specified period.
ATR Period: Users can modify ATR length to calculate the channels width (Volatility).
ATR Multiplier: Users can fine-tune how much of the volatility they want to factor into the channels, providing more control over the final calculation.
MA Period: Smoothing period for the Moving Averages.
MA Type: Choosing from different Moving Averages types providing different smoothing types.
Setting Alerts:
Built-in alerts for trend detection:
Bullish Trend: When price crosses the upper band, it signals a Bullish Signal (Blue Color)
Bearish Trend: When price crosses the lower band, it signals a Bearish Signal (Orange Color)
Credits to @jaggedsoft , it's a modified version of his.
Keltner Center Of Gravity Channel ( KeltCOG )I have the ambition to create a ‘landscape’ which enables the user to see the ‘mood’ of the market about the price of an instrument, simply by looking where the candles go. Prices are a simple phenomenon , they go up or down or stay the same. This is represented quite well for the short term by a candle. I recommend to study candle patterns. Prices not only fluctuate but also trend up, down or go sideways. The user should analyze this by determining the COG (Center Of Gravity) and the ‘normal’ current range by using the historical data in a lookback period.
As a COG the center line of a Donchian Channel is often used. I.m.o. a COG should be a zone, in this channel I use the gray zone of my Donchian Fibonacci Channel, The ‘normal’ range is a multiple of Average True Range, as used in a Keltner Channel. Combining the two can give a cumbersome result, as one can see in my Keltner Fibonacci Channel. In this KeltCOG channel I solved this by not using all Fibonacci levels and by making the Keltner lines strictly parallel to the nearest COG line. To do this, I use the fact that the COG lines have horizontal stretches, there I make the Keltner lines horizontal too. Only where the COG lines change value, the Keltner lines are recalculated. This way the channel gets a very regular shape with three clear zones.
Interpretation of a chart by using the KeltCOG channel.
Overbought: If the candles go higher then the blue zone, the market is hyper enthusiast, creating an overbought situation. This is often followed by a reversion to the COG.
Uptrend: If the candles form in the blue zone, the market is enthusiast and willing to pay more.
Hopeful: If the candles form in or near the upper uncolored zone, the market is hopeful and is thinking about paying more. Sometimes prices go a little up.
Content: If the candles form in the gray zone, which represents COG, the market is happy with the current prices, so these move sideways
Disappointed: If the candles form in or near the lower uncolored zone, the market is disappointed and contemplates paying less, sometimes prices go a little down.
Downtrend: If the candles form in red zone, the market doesn’t like the instrument at all, rejects the current price and is only prepared to pay less.
Oversold: If the candles form below the red zone, the market overdoes its disgust, creating an oversold situation, often followed by a reversion to the COG.
Keltner Channels Bands (RMA)Keltner Channel Bands
These normally consist of:
Keltner Channel Upper Band = EMA + Multiplier ∗ ATR
Keltner Channel Lower Band = EMA − Multiplier ∗ ATR
However instead of using ATR we are using RMA
This gives us a much smoother take of the KCB
We are also using 2 sets of bands built on 1 Moving average, this is a common set up for mean reversion strategies.
This can often be paired with RSI for lower timeframe divergences
Divergence
This is using the RSI to calculate when price sets new lows/highs whilst the RSI movement is in the opposite direction.
The way this is calculated is slightly different to traditional divergence scripts. instead of looking for pivot highs/lows in the RSI we are logging the RSI value when price makes it pivot highs/lows.
Gradient Bands
The Gradient Colouring on the bands is measuring how long price has been either side of the MA.
As Keltner bands are commonly used as a mean reversion strategy, I thought it would be useful to see how long price has been trending in a certain direction, the stronger the colours get,
the longer price has been trending that direction which could suggest we are looking for a retrace soon.
Alerts
Alerts included let you choose whether you want to receive an alert for the inside, outside or both band touches.
To set up these alerts, simply toggle them on in the settings, then click on the 3 dots next to the indicators name, from there you click 'Add Alert'.
From there you can customise the alert settings but make sure to leave the 2 top boxes which control the alert conditions. They will be default selected onto your correct settings, the rest you may want to change.
Once you create the alert, it will then trigger as soon as price touches your chosen inside/outside band.
Suggestions
Please feel free to offer any suggestions which you think could improve the script
Disclaimer
The default settings/parameters were shared by Jimtalbott, feel free to play about with the and use this code to make your own strategies.
mForex - Keltner channel + EMA Scalping systemTransaction setup parameters
Time frame: M5, M15
Currency pair: EUR / USD , GPB / USD
Transaction: London, USA
Number of orders / day: 10 - 15 orders
Trading strategies
=== BUY ===
Candles close on the upper Keltner
EMA10 crosses the upper Keltner range from below
Stop loss in the middle band or up to 12 pips
Profit target: 15-25 pips
=== SELL ===
Candles close below Keltner below
EMA10 crosses the Keltner range below from above
Stop loss in the middle band or up to 12 pips
Profit target: 15-25 pips
Adam H Grimes - Keltner Channels with Day's High & LowThe indicator shows the day's high and low along with the Keltner Channels.
Keltner Channel Period - 20
Keltner Channel Multiple - 2.25
Rivanews Setup - Riva-Keltner, Média Rock [xdecow]This setup was created by Rivadavila S. Malheiros
There are 2 Keltner Channels with exponential moving averages of 21 (riva) and 89 (rock) and ATR multiplier of 0.618.
When the price is between the bands, it is a sign of consolidation (yellow).
When the price is above the bands, it is an upward trend (green).
When the price is below the bands, it is a downward trend (red).
When the price crosses rock 89 and closes up / down, it may be a sign of a reversal. But it has a high probability of testing rock 89 again.
------------------------------------------------------------------------------------------
PT-BR
Este setup foi criado por Rivadavila S. Malheiros
São 2 Keltner Channels com médias móveis exponenciais de 21 (riva) e 89 (rock) e multiplicador do ATR de 0.618.
Quando o preço está entre as bandas, é sinal de consolidação (amarelo).
Quando o preço está acima das bandas, é uma tendencia de alta (verde).
Quando o preço está abaixo das bandas, é uma tendencia de baixa (vermelho).
Quando o preço cruza a rock 89 e fecha acima/abaixo, pode ser sinal de reversão. Mas tem uma alta probabilidade de testar a rock 89 novamente.
Keltner Channel Strategy The Keltner Channel, a classic indicator
of technical analysis developed by Chester Keltner in 1960.
The indicator is a bit like Bollinger Bands and Envelopes.
WARNING:
- This script to change bars colors.
Keltner Channel The Keltner Channel, a classic indicator
of technical analysis developed by Chester Keltner in 1960.
The indicator is a bit like Bollinger Bands and Envelopes.
Volume Weighted Keltner ChannelThis indicator provides a customizable implementation of Keltner Channels (KC), a volatility-based envelope designed to identify trend direction and potential reversal or breakout zones. It allows deep control over its core components and calculation methods.
Key Features:
Customizable Components: This implementation allows for full control over the channel's construction:
Basis Line: Choose from a wide range of moving average types (e.g., EMA, SMA, WMA) for the central line.
Volatility Bands: Select the volatility measure used to construct the bands: Average True Range (ATR), True Range (TR), or bar Range (High-Low).
Volume Weighting: An option (Volume weighted) allows for volume to be incorporated into the calculation of both the basis moving average and the selected volatility measure (e.g., creating a Volume-Weighted ATR). This makes the channel more responsive to moves backed by high market participation.
Logarithmic Scaling: The indicator includes an optional 'Normalize' mode that calculates the channel on a logarithmic scale. This creates bands that represent a constant percentage distance from the basis, making it a suitable tool for analyzing long-term trends in exponential markets.
Multi-Timeframe (MTF) Engine: The indicator includes an MTF conversion block. When a Higher Timeframe (HTF) is selected, advanced options become available: Fill Gaps handles data gaps, and Wait for timeframe to close prevents repainting by ensuring the indicator only updates when the HTF bar closes.
Integrated Alerts: Includes a full set of built-in alerts for the source price crossing over or under the upper band, lower band, and the central basis line.
DISCLAIMER
For Informational/Educational Use Only: This indicator is provided for informational and educational purposes only. It does not constitute financial, investment, or trading advice, nor is it a recommendation to buy or sell any asset.
Use at Your Own Risk: All trading decisions you make based on the information or signals generated by this indicator are made solely at your own risk.
No Guarantee of Performance: Past performance is not an indicator of future results. The author makes no guarantee regarding the accuracy of the signals or future profitability.
No Liability: The author shall not be held liable for any financial losses or damages incurred directly or indirectly from the use of this indicator.
Signals Are Not Recommendations: The alerts and visual signals (e.g., crossovers) generated by this tool are not direct recommendations to buy or sell. They are technical observations for your own analysis and consideration.
Keltner Trend V3It's just a simple keltner trend with options added to:
Eradicate repainting
more MAs
Json alerts (useful for bots)
I recommend using "open" option for all sources if you are going to use it with a bot, or if you want to be safe and enter with confirmations. Using the default settings would also show you all the entries without repainting as it uses high and low prices to check breakouts and not solely the close price (which is generally a false representative in historic analysis).
My favorite lengths are 7, 14, and 21. There is no specific reason, they just seem to work well most of the time. You can (and should) optimize it to your purposes.
Thanks to the original author @jaggedsoft this script is just a improved version of theirs.
Advanced Keltner ChannelsThis is a more advanced version of the standard Keltner Channels indicator. It allows you to change the type of the moving average (Simple, Exponential, Weighted, Volume-weighted, Triple EMA or a moving average that uses RSI ). The indicator also allows you to volume weight the indicator (turned on by default). If you want to weight the indicator against the true range instead of volume this is also possible. By default, this will be done automatically for assets that do not support volume .
Keltner Channels Oscillator v2A cleaner aesthetic and an introduction to the indicator's uses.
I would also be very appreciative of any Keltner Channels related ideas or concepts you may have run across to add features to this indicator.
Keltner Channel with auto highlighting of Bear/Bull reversals*** New version @ ****
All options configurable.
Reversals are marked using crosses. as well as highlighted using green/red color (depending on bull/bear). Enjoy!
Keltner-1-2-3Keltner Bands with 3 different widths
Customizable for
Middle band as EMA/SMA
ATR as EMA/SMA
Lookback period
Width of the 3 bands
Bollinger Bands + Keltner Channel Refurbished█ Goals
This is an indicator that brings together Bollinger Bands and Keltner's Channels in one thing.
Both are very similar, so I decided to make a merge of the best features I found out there.
Here there is the possibility of choosing one of these two as needed.
In addition, I added the following resources:
1. Pre-Defined intermediate bands with Fibonacci values;
2. Detachment of the bands in which the price was present;
3. Choice of Moving Average:
"Simple", "Exponential", "Regularized Exponential", "Hull", "Arnaud Legoux", "Weighted Moving Average", "Least Squares Moving Average (Linear Regression)", "Volume Weighted Moving Average", "Smoothed Moving Average", "Median", "VWAP");
4. Statistics: bars count within the bands.
█ Concepts
Keltner Channels vs. Bollinger Bands
"These two indicators are quite similar.
Keltner Channels use ATR to calculate the upper and lower bands while Bollinger Bands use standard deviation instead.
The interpretation of the indicators is similar, although since the calculations are different the two indicators may provide slightly different information or trade signals."
(Investopedia)
Bollinger Bands (BB)
"Bollinger Bands (BB) are a widely popular technical analysis instrument created by John Bollinger in the early 1980’s.
Bollinger Bands consist of a band of three lines which are plotted in relation to security prices.
The line in the middle is usually a Simple Moving Average (SMA) set to a period of 20 days (the type of trend line and period can be changed by the trader; however a 20 day moving average is by far the most popular).
The SMA then serves as a base for the Upper and Lower Bands which are used as a way to measure volatility by observing the relationship between the Bands and price.
Typically the Upper and Lower Bands are set to two standard deviations away from the SMA (The Middle Line); however the number of standard deviations can also be adjusted by the trader."
(TradingView)
Keltner Channels (KC)
"The Keltner Channels (KC) indicator is a banded indicator similar to Bollinger Bands and Moving Average Envelopes.
They consist of an Upper Envelope above a Middle Line as well as a Lower Envelope below the Middle Line.
The Middle Line is a moving average of price over a user-defined time period.
Either a simple moving average or an exponential moving average are typically used. The Upper and Lower Envelopes (user defined) are set a range away from the Middle Line.
This can be a multiple of the daily high/low range, or more commonly a multiple of the Average True Range."
(TradingView)
█ Examples
Bollinger Bands with 200 REMA:
Keltner Channel with 200 REMA:
Bollinger Bands with 55 ALMA:
Keltner Channel with 55 ALMA:
Bollinger Bands with 55 Least Squares Moving Average:
█ Thanks
- TradingView (BB, KC, ATR, MA's)
- everget (Regularized Exponential Moving Average)
- TimeFliesBuy ("Triple Bollinger Bands")
- Rashad ("Fibonacci Bollinger Bands")
- Dicargo_Beam ("Is the Bollinger Bands assumption wrong?")
LNL Keltner ExhaustionLNL Keltner Exhaustion resolves the constant issue of Bands vs. EMAs
With the keltner exhaustion wedges, you can easily see the keltner channel extremes witout using the actual bands. That way, you will know whether the price is outside of the keltner channels + you can use other indicators (such as EMAs) on chart without the bands so the chart does not look messy & hard to read.
Two Types of Wedges:
1. Green/Red Wedge - Price action is extended outside the regular band. More of a "profit taking" zone rather than "entry taking" (default set to 3.0 ATR factor).
2. Purple Wedge - Price action is extended outside of the extreme band. Chances are price will revert to mean soon (default set to 4.0 ATR factor).
Works great as a target tool with the squeeze setup or as an overall extension gauge.
Hope it helps.
LNL Keltner CandlesLNL Keltner Candles
This indicator plots mean reversion (reversal) arrows with custom painted candles based on the price touch or close above or below keltner channel limits (upper & lower bands). This study was created primarily for swing trading & higher time frames such as daily and weekly. Lower time frames might result in more false signals.
Mean Reversal Arrows:
1. Reversal Arrow Up - If the price drops below the lower band extremes, reversal up is the trigger for a bullish mean reversion.
2. Reversal Arrow Down - Once the price reach the higher band extremes, reversal down is the trigger for a bearish mean reversion.
The Concept of Mean Reversion:
There are just two types of moves in any market: The market is either expanding from the mean or retracing back to the mean. These reversions & epxansions are happening across all types of markets. The goal of this study is to catch the powerful mean reversion from extremes back to the mean. Once the candles light up green / red, it is time to look for the reversal (purple) arrow which triggers the mean reversion setup. Mean reversion is not about catching the next big swing turn to new highs or lows. It is all about the base hits = the mean. So the target here is always the average price. The idea here is to catch the average market ebbs & flows, not the next home run.
What Do I Mean by Mean?
Mean is usually the average price from the last 20-30 bars. Basically something like a 20 MA or Keltner Channel or Bollinger Band midline are really good visual representators of the mean (average price).
Hope it helps.
[KVA]Keltner Channel PercentageThe " Keltner Channel Percentage " (KC%) indicator, designed for TradingView's version 5 language, offers a unique perspective on market volatility and trend analysis, similar yet distinct from the well-known Bollinger Bands Percentage (BB%).
Audience and Applications:
This indicator is suited for traders who prefer a volatility-based approach but seek a smoother, trend-focused alternative to BB%.
It is especially valuable in markets where volatility is not just a byproduct but a central aspect of price dynamics.
In essence, the " Keltner Channel Percentage " stands as a complementary tool to Bollinger Bands Percentage. It offers a different lens through which to view market volatility and trends, providing traders with additional insights and strategies for navigating the financial markets. Its unique combination of simplicity and depth makes it a valuable addition to the technical analyst's toolkit, suitable for a variety of trading scenarios and market conditions.
ATR Bands (Keltner Channel), Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of ATR Bands, candle wicks crossing the ATR upper and lower bands, and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from the lower band when using phi * multiplier
B2 Signal - Potential pivot up from the lower band when using 1/2 * multiplier
B3 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the upper band when using
S2 Signal - Potential pivot down from the upper band when using 1/2 * multiplier
S3 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional B1, B2, and S1, and S2 signals can be displayed that use the bands based on a multiplier that is half that of the primary one, and phi (0.618) times the primary multiplier as a way to quickly check for signals occurring along different, but related, bands.
Calculations
ATR Bands, or Keltner Channels, are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. ATR Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of ATRs to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of ATRs from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Settings
CHANNEL SETTINGS
Baseline EMA Period (Default: 21): Period length of the moving average basis line.
ATR Period (Default: 21): The number of periods over which the Average True Range (ATR) is calculated.
Basis MA Type (Default: SMA): The moving average type for the basis line.
Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
ADDITIONAL CHANNELS
Half of Multiplier Offset (Default: True): Toggles the display of the ATR bands that are set a distance of half of the ATR multiplier.
Quarter of Multiplier Offset (Default: false): Toggles the display of the ATR bands that are set a distance of one quarter of the ATR multiplier.
Phi (Φ) Offset (Default: false): Toggles the display of the ATR bands that are set a distance of phi (Φ) times the ATR multiplier.
WICK SETTINGS FOR CANDLE FILTERS
Wick Ratio for Bands (Default: 0.4): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.4): The ratio of wick size to total candle size for use at baseline.
Use Candle Body (rather than full candle size) (Default: false): Determines whether wick calculations use the candle body or the entire candle size.
VISUAL PREFERENCES - SIGNALS
Show Signals (Default: true): Allows signal labels to be shown.
Show Signals from 1/2 Band Offset (Default: false): Toggle signals originating from 1/2 offset upper and lower bands.
Show Signals from Phi (Φ) Band Offset (Default: false): Toggle signals originating from phi (Φ) offset upper and lower bands.
Show Baseline Signals (Default: false): Toggle Baseline signals.
VISUAL PREFERENCES - BANDS
Show ATR (Keltner) Bands (Default: true): Use a background color inside the Bollinger Bands.
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
Williams %R + Keltner chanells - indicator (AS)1)INDICATOR ---This indicator is a combination of Keltner channels and Williams %R.
It measures trend using these two indicators.
When Williams %R is overbought(above upper line (default=-20)) and Keltner lower line is below price indicator shows uptrend (green).
When Williams %R is oversold(below lower line (default=-80)) and Keltner upper line is above price indicator shows downtrend (red) .
Can be turned into a strategy quickly.
2) CALCULATIONS:
Keltner basis is a choosen type of moving average and upper line is basis + (ATR*multiplier). Same with lower but minus instead of plus so basiss – (ATR*multiplier)
Second indicator
Williams %R reflects the level of the close relative to the highest high for the lookback period
3)PLS-HELP-----Looking for tips, ideas, sets of parameters, markets and timeframes, rules for strategy -------OVERALL -every advice you can have
4) SIGNALS-----buy signal is when price is above upper KC and Williams %R is above OVB(-20). Short is exactly the other way around
5) CUSTOMIZATION:
-%R-------LENGTH/SMOOTHING/TYPE SMOOTHING MA
-%R-------OVS/MID/OVB -(MID-no use for now)
-KC -------LENGTH/TYPE OF MAIN MA
-KC-------MULTIPLIER,ATR LENGTH
-OTHER--LENGTH/TYPE OF MA - (for signal filters, not used for now)
-OTHER--SOURCE -src of calculations
-OTHER--OVERLAY - plots %R values for debugging etc(ON by default)
6)WARNING - do not use this indicator on its own for trading
7)ENJOY
