• Home
  • Courses
    • NSE Academy Certified Courses
      • Capital Market Analytics
      • Certified Program on Intraday Trading Strategies
      • Advanced Technical Analysis
      • Advanced Options
      • Advanced Algo Trading
      • Advanced Fundamental Analysis
      • Advanced Risk Management
      • Algorithmic Trading & Computational Finance using Python & R
    • TC Courses
      • FSM 1.0
      • FSM 2.0
      • Mentorship Program
  • Learning Center
    • Financial Education
    • IPO Issues
    • Fundamental Analysis
    • Technical Corner
    • Options Corner
    • Risk Management
  • Screener
  • Emerging Leaders
  • Terminal
  • Subscribe
Have any question?
7718989954
info@tradingcampus.in
Login
Trading CampusTrading Campus
  • Home
  • Courses
    • NSE Academy Certified Courses
      • Capital Market Analytics
      • Certified Program on Intraday Trading Strategies
      • Advanced Technical Analysis
      • Advanced Options
      • Advanced Algo Trading
      • Advanced Fundamental Analysis
      • Advanced Risk Management
      • Algorithmic Trading & Computational Finance using Python & R
    • TC Courses
      • FSM 1.0
      • FSM 2.0
      • Mentorship Program
  • Learning Center
    • Financial Education
    • IPO Issues
    • Fundamental Analysis
    • Technical Corner
    • Options Corner
    • Risk Management
  • Screener
  • Emerging Leaders
  • Terminal
  • Subscribe

Basics of Python

  • Home
  • Blog
  • Basics of Python
  • Keltner Channel Indicator

Keltner Channel Indicator

  • Posted by Abhilash Bandari
  • Date November 29, 2020
  • The Keltner Channel is a technical indicator used to analyse the stock market.
  • It comprises three separate lines used to analyse the price volatility.
  • The middle line is an exponential moving average (EMA) of the price.
  • The above line is set two times the average true range (ATR) above EMA.
  • Similarly, the lower line is set two times the ATR below the EMA.
  • Most of the time, the price ranges between the high and the low prices.
  • If the price crosses above the upper line or below the lower line, there is a high possibility of a trend reversal.
  • In few cases, it is because of the acceleration of the trend.

Formulae for Keltner Channel:

  1. Middle Line = EMA of 20 periods
  2. Upper Line = EMA + (2*ATR)
  3. Lower Line = EMA – (2*ATR)

Where, EMA is calculated using

in most of the cases, N = 10

 

ATR is calculated using

Highest of the three values

 

  • Select the N value around 10 or 20 because if the value exceeds beyond this, the indicator becomes a highly lagged indicator.
  • At the same time, if the value is too small, the lines are closer to each other and the price crosses out of the bands frequently.

This is the 1 day chart of United Breweries Ltd (BSE) around Jan-July, 2020

 

  • A rising channel indicates that the price is rising. Similarly, if the channel is falling, it indicates that the price is falling. This is clearly depicted in the above image.
  • If the price breaks above the upper line, it indicates a strong upward trend and if the price breaks below the lower line, it indicates a strong downward trend. 
  • If the price fluctuates between the upper and the lower bands, it indicates a weak trend.
  • If the price continuously hits the lower line and suddenly it hits the upper line, it indicates the end of the downward trend. Traders can enter the market and initiate their long positions. If they are already in the rally, they can initiate short coverings.
  • Similarly, if the price hits the upper line continuously and hits the lower line suddenly, it indicates the end of the upward trend. Traders can enter the trade and initiate their short positions. If they are already in the rally, they can initiate long unwinding. 
  • The main disadvantage of this indicator is it indicates many calculations. The traders need to be experienced in order select the appropriate number of periods.
  • Share:
author avatar
Abhilash Bandari

Previous post

Ichimoku Cloud
November 29, 2020

Next post

Volume Weighted Average Price Indicator
December 1, 2020

You may also like

Arithmetic Operators
12 May, 2021

There are around 7 arithmetic operators available in python. These are called as binary operators because they act on two operators. a = 13, b = 5 Operator Meaning Example …

Operators in Python
11 May, 2021

An operator is a symbol that performs an operation. Some examples of operations are addition, subtraction, multiplication etc. a + b is an operation where a,b are operands and ‘+’ …

Bear Call Spread
23 December, 2020

Bear call spread is an option strategy used by traders to cap their maximum loss. At first, a trader is bearish with the downside capped, so he initiates a sell …

emerging leader

  • Basics of Python
  • Emerging Leaders
  • Financial Education
  • Fundamental Analysis
  • Investment Ideas
  • IPO Issues
  • Nifty 50
  • Options Corner
  • Risk Management
  • Technical Corner
  • Uncategorized

Past Batches

December 2018 – Completed

March 2019 – Completed

July 2019 – Completed

November 2019 – Completed

January  2020 – Running

Get Updates

Subscribe to our mailing list and get learning stuff and updates to your email inbox
Loading

Accordions

Company Summary

Bajaj Electricals Limited is engaged in engineering and projects; power distribution, illumination and consumer durables businesses.

It has a range of domestic and kitchen appliances comprising water heaters, room heaters, coolers, irons, mixers, induction cookers, toasters, kettles, microwave, rice cookers, gas stoves, non-electrical kitchen aids and pressure cookers.

It offers ceiling, table, pedestal, wall, fresh air and industrial fans, and lighting solutions, such as light sources, light emitting diode-based lighting products, domestic luminaires, torches and lanterns.

Key Highlights of Company Business

Segments and Products

The Company's business segments consist of

  1. Lighting;
  2. Consumer Durables;
  3. Engineering & Projects,

The Lighting segment includes lamps, tubes and luminaries.

The Consumer Durables segment includes appliances and fans.

The Engineering & Projects segment includes transmission line towers, telecommunications towers, highmast, poles and special projects.

The Others segment includes diecasting and wind energy.

Financial Performance

Financial Ratios

Trading Campus

7718989954

info@tradingcampus.in

Company

  • About Us
  • Gallery
  • Team
  • Contact Us
  • Careers

Courses

  • Technical Analysis
  • Algo Trading
  • Options
  • Fundamental Analysis
  • Risk Management
  • Algo Trading using Python

Support

  • Learning Center
  • Forum
  • Login
  • Videos

Education WordPress Theme by ThimPress. Powered by WordPress.

Copyright © 2018 Trading Campus. All rights reserved.