Keltner Channels Technical Indicator

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In this article, we will be discussing the Keltner Channels technical indicator that is used to analyze stock performance.

I will provide

  • A brief introduction to the theory or concept behind Keltner Channels indicator
  • A demo of the template and how you can use it to calculate Keltner Channels for any stock you are interested in.
Keltner Channels Technical Indicator in Excel

Concept / Theory

The Keltner Channels idea is based on a concept introduced by Chester Keltner, but the methodology has evolved over time. However, the indicator is still named after Keltner.

As the name indicates, this indicator is like a band, channel, envelope or a region.

It uses Exponential Moving Average as the middle line and envelopes are calculated using Average True Range.

Calculation

  • Upper Envelope = EMA + 2*ATR
  • Lower Envelope = EMA – 2*ATR

EMA is typically a 20 period EMA.

How Keltner Channels indicator is calculated

Trading Signals

A breakthrough above the Upper Envelope signifies overbought conditions. A breakthrough below the Lower Envelope signifies oversold conditions.

TradingView

The following is an example signal strategy

The following is an example signal strategy

  1. Buy when the Closing Price crosses from above the lower envelope to below the lower envelope
  2. Sell when the Closing Price crosses from below the upper envelope to above the lower envelope

Keltner Channels Excel Template

The template will help you create the Keltner Channels indicator automatically and calculate the trading signals instantly for any stock.

Keltner-channels-Indicator
Keltner-channels-Indicator

The blue line indicates the Closing price. The shaded area represents the envelope from the lower envelope line to upper envelope line.

Download

Video Demo

Requirements:

To pull live Stock data from the services you would need either Microsoft 365 Subscription Plans for PC and Web or Excel for the web

How to Use:

Type in a stock sticker symbol on the top left.

Input stock symbol

If Excel does not recognize your stock symbol, it will pop up this data selector box.

Select the Stock

You can select the stock you are interested in.

Period

The template can pull up to 5 years of price history by default. You can choose how much history to display on the chart easily using the slicer buttons.

Period-for-the-Stock-price-history
Period-for-the-Stock-price-history

The options are 5 Days, Month Till Date, 1 Month, 3 Months, 6 Months, Year Till Date, 1 Year, 5 Years.

Interval

The template allows price history at 3 different intervals.

Interval-of-Stock-price-history
Interval-of-Stock-price-history

Daily/Weekly/Monthly are the options.

Input Parameters

Input parameters
  • EMA Len: You can type in a length in periods. The commonly used is 20.
  • ATR Len: The length in periods used to calculate the ATR.  We have used the EMA to calculate ATR in this template.

The chart will update automatically based on all the above inputs.

Signals

The template shows two types of signals (Buy, Sell) on the chart.

Keltner Channels Indicator with Trading Signals

The following rule generates the signals.

  1. Buy when the Closing Price crosses from above the lower envelope to below the lower envelope
  2. Sell when the Closing Price crosses from below the upper envelope to above the lower envelope

In addition, if the latest day has a signal, it will be displayed below the current price.

Stock Price

Timezone

On the top right you can see the maximum of the last trade time of these currencies.

The default time that Microsoft provides is UTC.  The offset is set to -7 hrs, to convert to pacific time zone.

You can modify this if you need the time in a different time zone.

Visit https://savvytime.com/converter/utc to view offset.

How to refresh data?

How to refresh Stocks data
How to refresh Stocks data

Resources

Keltner Channels – TradingView

For more Excel Templates for Stock Market, visit indzara.com/stock-market-templates

Feedback

Please share your feedback on this template in the Comments below. If you find this useful, please share with your friends who may benefit from this content.

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