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Keltner Bands Bitcoin Analysis & Keltner Bands Trade Signals

Developed by Chester Keltner. Explained in his book 'How to Make Money in Commodities'

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 Bitcoin Indicator - Keltner Bands BTCUSD Indicator Analysis 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 an n number of periods exponential moving average of the closing bitcoin price. These channels are developed & created by

Adding (for the upper line) and

Subtracting (for the lower 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

When bitcoin price moves outside the bands then a continuation of the current bitcoin trend is implied. A buy cryptocurrency signal is when the channels are moving upwards & sell cryptocurrency signal is when the channels are moving downward

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 Bitcoin Indicator Reversal Bitcoin Signals - Keltner Bands Analysis on BTCUSD Charts

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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