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Here is how Keltner Channel helps traders analyse price action

The middle EMA acts as support/resistance level in Keltner Channel

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Keltner Channel

Avdhut Bagkar Mumbai
Keltner Channel is a volatility-based technical indicator that comprises three bands, wherein the middle band is the exponential moving average (EMA) and the other two -- upper and lower bands -- are average true range (ATR). 

When the bands expand, the volatility increases. Similarly, a contraction in the bands is seen as an indicator of a decrease in volatility. This is the only volatility indicator that has direct practical benefit for traders.

In a normal scenario, the security price trades within the bands. Whenever the price breaks out of the bands, the trend is said to have gained momentum. The