Keltner Bands Bitcoin Analysis & Keltner Bands Trade Signals
Developed by Chester Keltner. Explained in his book 'How to Make Money in Commodities'
Keltner Bands are based on ATR trading indicator, the bands use ATR values to draw the bands lines.
These Bands form Channels that help to identify the Bitcoin market trends using this simple volatility channel.
Keltner Channels
Construction
Keltner Channels are similar to Bollinger Band except for the fact that Bollinger Band use standard deviations technique to figure out the market volatility & to draw the bands.
For the keltner channels instead of using the standard deviations the average true range (ATR) measure of the price volatility is used.
This btcusd indicator is an n number of periods exponential moving average of the closing bitcoin price. These bands are developed 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
Continuation Buy & Sell Trading Signals
Reversal Bitcoin Signals - Double Top & Double Bottoms
Tops and Bottoms made outside the bands followed by tops and bottoms made inside the Keltner channels indicate a signal for reversals in the btcusd market trend.
Reversal Signals
Ranging Bitcoin Markets
In ranging markets a move which originates from one Keltner channel will tend to go and move all the way to the other channel.
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