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What Are Keltner Channels

Keltner channels are a twenty-day average of the typical price with two edges set twice the average true range above and below it, so the channel is as wide as the days have lately been reaching. This paper shows you gold's channel of 2025 drawn from real bars — 341 dollars wide in April, 166 in July — the idea as a swimming lane whose ropes sit a fixed number of strokes either side of the swimmer's line, the edges on the daily chart, the arithmetic for one day, and the three inputs every version asks for on your platform.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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An average, and two edges set by the reach

Keltner channels are three lines. The middle is a twenty-day average of the typical price, the high, low and close of each day averaged. The two edges sit above and below it at twice the average true range of the last ten days — the distance a day has been reaching from its top to its bottom lately. When the days are big the edges stand out: gold's were 341 dollars apart on 22 April 2025. When the days are small they close in: 166 dollars apart on 18 July. The channel is the reach, drawn round the average.

A swimming lane

The picture is a swimming lane. The dashed line down the middle is the swimmer's average line, and the two ropes are set a fixed number of strokes either side of it: two strokes out, always. A stroke is the average true range, how far a day has been reaching from its top to its bottom lately, so a market taking big strokes has its ropes set far apart and a market taking small ones has them close in. Keltner channels are that lane, and the ropes move as the stroke changes.

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