Trade Bitcoin Trading

Keltner Bands Bitcoin Analysis & Keltner Bands Trade Signals

Created by Chester Keltner in His Book on Commodity Trading Profits

Keltner Bands, derived from the Average True Range (ATR) indicator, utilize ATR values to delineate the bands.

These Bands serve to construct Channels, which aid in identifying prevailing Bitcoin market trends using this straightforward volatility channel mechanism.

Keltner Bands for Bitcoin - How to Analyze Keltner Bands on BTCUSD Charts

Keltner Channels

Construction

Keltner Channels are a lot like Bollinger Bands, but Bollinger Bands use standard deviations to determine how unsteady the market is and to draw the bands on the chart.

Keltner channels use ATR, not deviations. ATR measures price swings.

This btcusd indicator is a moving average that uses the closing bitcoin price over a number of periods. These channels are made by

Adding (for the top line) and

Taking Away (for the bottom line)

An (n period simple moving average of an n-period ATR) * an ATR multiplier.

BTCUSD Analysis & Generating Signals

This btcusd indicator can be transacted in much the same way as a Bollinger Bands

Continuation Signals

If Bitcoin price goes beyond the bands, the ongoing trend in Bitcoin will keep going. A signal to buy crypto comes when channels rise. A signal to sell appears when channels drop.

Keltner Bands Continuation Buy Sell Bitcoin Signals

Continuation Buy & Sell Trading Signals

Reversal Bitcoin Signals - Double Top & Double Bottoms

Tops and bottoms outside Keltner channels, followed by ones inside, signal trend reversals in BTCUSD.

Keltner Bands for Bitcoin Reversals - Analyze BTCUSD with Keltner Bands

Reversal Signals

Ranging Bitcoin Markets

When prices stay within a range, a move from one Keltner channel will usually go all the way to the opposite channel.

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