What is keltner channels indicator in trading

What is keltner channels indicator in trading

Assalamu Alaikum Dosto!

Keltner Channels

Keltner Channels volatility-based envelopes hain jo ek exponential moving average ke upar aur neeche set kiye jate hain. Yeh indicator Bollinger Bands ki tarah hai, jo bands set karne ke liye standard deviation ka istemal karte hain. Standard deviation ke bajaye, Keltner Channels Average True Range (ATR) ka istemal karte hain channel distance set karne ke liye. Channels aam tor par do Average True Range values 20-day EMA ke upar aur neeche set kiye jate hain. Exponential moving average direction dictate karta hai aur Average True Range channel width set karta hai. Keltner Channels ek trend-following indicator hain jo channel breakouts aur channel direction ke sath reversals identify karne ke liye istemal kiye jate hain. Channels overbought aur oversold levels identify karne ke liye bhi istemal kiye jate hain jab trend flat ho.

1960 ki apni kitab, "How to Make Money in Commodities," mein Chester Keltner ne "Ten-Day Moving Average Trading Rule" introduce kiya, jo Keltner Channels ka original version mana jata hai. Yeh original version ek 10-day SMA of the typical price {(H+L+C)/3)} ke sath start hota tha as the centerline. 10-day SMA of the High-Low range upper aur lower channel lines set karne ke liye add aur subtract kiya jata tha. Linda Bradford Raschke ne 1980s mein Keltner Channels ka naya version introduce kiya. Bollinger Bands ki tarah, yeh naya version ek volatility-based indicator, Average True Range (ATR), ka istemal karta hai channel width set karne ke liye.

Keltner Channels Calculation

Keltner Channels calculate karne ke liye teen steps hain. Pehle, exponential moving average ke liye length select karein. Doosra, Average True Range (ATR) ke liye time periods choose karein. Teesra, Average True Range ke liye multiplier choose karein.

• Middle Line: 20-day exponential moving average
• Upper Channel Line: 20-day EMA + (2 x ATR(10))
• Lower Channel Line: 20-day EMA - (2 x ATR(10))

Upar wala example SharpCharts ke default settings par mabni hai. Kyunki moving averages price se peechay rehti hain, ek longer moving average zyada lag aur ek shorter moving average kam lag hota hai. ATR basic volatility setting hai. Short timeframes, jese 10, ek zyada volatile ATR produce karte hain jo 10-period volatility ke sath fluctuate karta hai. Longer timeframes, jese 100, in fluctuations ko smooth karke ek constant ATR reading produce karte hain. Multiplier ka channel width par sab se zyada asar hota hai. Sirf 2 se 1 change karne se channel width aadhi ho jati hai. 2 se 3 increase karne se channel width 50% barh jati hai.

Keltner Channels Calculation

Channels, bands aur envelopes par mabni indicators ko most price action encompass karne ke liye design kiya jata hai. Isliye, moves jo channel lines ke upar ya neeche hoti hain, attention warrant karti hain kyunki yeh relatively rare hoti hain. Trends aksar ek direction mein strong moves ke sath start hote hain. Upper channel line ke upar surge extraordinary strength dikhata hai, jabke lower channel line ke neeche plunge extraordinary weakness dikhata hai. Aise strong moves ek trend ke end aur dusre ke start ka signal de sakte hain.

Exponential moving average as its foundation, Keltner Channels ek trend-following indicator hain. Moving averages aur dusre trend-following indicators ki tarah, Keltner Channels price action se peechay rehti hain. Moving average ka direction channel ka direction dictate karta hai. Aam tor par, jab channel lower move karta hai to downtrend present hota hai, jabke jab channel higher move karta hai to uptrend exist karta hai. Jab channel sideways move karta hai to trend flat hota hai.

Channel upturn aur upper trend line ke upar break ek uptrend ka start signal de sakti hain. Channel downturn aur lower trend line ke neeche break ek downtrend ka start signal de sakti hain. Kabhi kabar ek strong trend channel breakout ke baad hold nahi karta aur prices channel lines ke darmiyan oscillate karti hain. Aise trading ranges ek relatively flat moving average ke sath marked hoti hain. Channel boundaries us waqt overbought aur oversold levels identify karne ke liye use ki ja sakti hain trading purposes ke liye.

Versus Bollinger Bands

Keltner Channels aur Bollinger Bands ke darmiyan do differences hain. Pehla, Keltner Channels smoother hain Bollinger Bands se kyunki Bollinger Bands ka width standard deviation par mabni hota hai, jo Average True Range (ATR) se zyada volatile hota hai. Bahut se log isay ek plus samajhte hain kyunki yeh ek more constant width create karta hai. Yeh Keltner Channels ko trend following aur trend identification ke liye behtar banata hai. Dusra, Keltner Channels ek exponential moving average ka use karti hain, jo Bollinger Bands mein use hone wale simple moving average se zyada sensitive hoti hain. Neeche wale chart mein Keltner Channels (blue), Bollinger Bands (pink), Average True Range (10), Standard Deviation (10) aur Standard Deviation (20) ko comparison ke liye dikhaya gaya hai. Notice karein ke Keltner Channels Bollinger Bands se zyada smooth hain. Notice karein ke Standard Deviation Average True Range (ATR) se larger range cover karta hai.

Up Trend

Keltner Channel ek mashhoor technical indicator hai jo financial markets mein price trends aur potential breakout opportunities ko identify karne ke liye use hota hai. Keltner Channel ke andar ek uptrend tab identify hota hai jab price consistently central moving average line, jo aam tor par ek Exponential Moving Average (EMA) hoti hai, ke upar rehti hai. Upper band, jo EMA se kuch Average True Ranges (ATR) upar hota hai, resistance level ke tor par act karta hai. Jab price upper band ko frequently touch ya exceed karti hai, to yeh strong bullish momentum signify karta hai aur uptrend confirm karta hai.

Ek uptrend mein, traders buying opportunities ko central EMA line par pullbacks ke dauran dekhte hain. Yeh strategy is expectation par mabni hoti hai ke price EMA se bounce back karegi aur apni upward movement continue karegi. Central EMA line ka slope bhi upward hona chahiye, jo trend ki strength ko reinforce karta hai. Keltner Channel ka istemal karke, traders underlying trend ko identify kar sakte hain, long positions ke liye appropriate entry points set kar sakte hain, aur central line ya lower band ke neeche stop-loss orders place kar sakte hain taake risk ko effectively manage kiya ja sake. Yeh approach strong uptrend phases ke dauran gains ko maximize karne mein madad karti hai jab potential reversals se bachati hai.

Down Trend

Ek downtrend Keltner Channel mein tab identify hota hai jab price consistently central EMA line ke neeche rehti hai aur frequently lower band ko touch ya neeche girti hai. Lower band, jo EMA se kuch ATR neeche set hota hai, support level ke tor par serve karta hai. Jab price lower band ke neeche move karti hai, to yeh strong bearish momentum indicate karti hai aur downtrend confirm karti hai.

Traders is information ka istemal selling opportunities ko central EMA line par rallies ke dauran identify karne ke liye karte hain. Central EMA ka downward slope bhi hona chahiye, jo downtrend ki strength ko further indicate karta hai. In rallies ke dauran short positions enter karke, traders downward movement ki continuation par capitalize karna aim karte hain. Keltner Channel stop-loss orders ko central EMA ya upper band ke upar place karne mein bhi madad karta hai taake potential reversals se bachaya ja sake.

Keltner Channel ek downtrend mein trading ke liye ek clear framework provide karta hai jo key support aur resistance levels ko highlight karta hai aur trend ka direction confirm karta hai. Yeh method traders ko systematically market ko approach karne mein madad karta hai, bearish phases ke dauran shorting opportunities par focus karte hue risk ko strategically manage karne ke through.

Flat Trend

Keltner Channel ke andar ek flat trend tab characterize hota hai jab price central EMA line ke ird gird oscillate kar rahi hoti hai bina kisi clear direction ke, aur upper aur lower bands ke andar rehti hai. Flat trend ke dauran, central EMA line aam tor par horizontal hoti hai, jo market indecision ya consolidation ko indicate karti hai. Price ka upper aur lower bands ke darmiyan back and forth move karna strong directional momentum ki kami ko suggest karta hai.

Flat trend mein, traders aksar range-bound trading strategy adopt karte hain. Is mein lower band ke qareeb buy karna aur upper band ke qareeb sell karna shamil hota hai, capitalizing on predictable oscillations. Flat trend indicate karta hai ke na to bulls aur na hi bears market par control rakhte hain, aur prices likely defined range mein rehti hain jab tak ek breakout occur na ho jaye.

Keltner Channel ki ability in boundaries ko define karne mein traders ko potential entry aur exit points identify karne mein madad karti hai within the range. Magar, caution advise ki jati hai, kyunki sudden breakouts ho sakte hain jo flat trend ka end aur ek naye directional movement ka start signal de sakte hain. Additional indicators, jese ke Relative Strength Index (RSI) ya Moving Average Convergence Divergence (MACD), ka istemal flat trend ki strength aur potential breakout points ko confirm karne ke liye madadgar ho sakta hai, trading decisions ko zyada informed banane mein.

Trading

Keltner Channels ko Charts mein ek price overlay ke tor par dhoonda ja sakta hai. Ek moving average ke tarah, Keltner Channels ko price plot ke upar show kiya jana chahiye. Dropdown box se indicator select karne par, default setting parameters window mein appear hongi (20,2.0,10). Pehla number (20) exponential moving average ke liye periods set karta hai. Doosra number (2.0) ATR multiplier hai. Teesra number (10) Average True Range (ATR) ke liye periods hai. Yeh default parameters channels ko 2 ATR values 20-day EMA ke upar/neeche set karte hain. Users apne charting needs ko suit karne ke liye parameters ko change kar sakte hain.

Neeche wala chart Archer Daniels Midland (ADM) ko dikhata hai jo ek uptrend start karta hai jese Keltner Channels upturn hoti hain aur stock upper channel line ke upar surge karta hai. ADM April-May mein ek clear downtrend mein tha jab prices lower channel ko pierce karti rehti thi. June mein ek strong thrust ke sath, prices upper channel ko exceed karti hain aur channel ek naye uptrend start karne ke liye upturn hota hai. Notice karein ke early aur late July mein dips par prices lower channel ke upar hold karti hain.

Ek naye uptrend establish hone ke bawajood, behtar entry point improve karne ke liye pullback ya wait karna aam tor par prudent hota hai. Momentum oscillators ya dusre indicators ko phir oversold readings define karne ke liye employ kiya ja sakta hai.

Doosra chart Nvidia (NVDA) ko dikhata hai jo ek downtrend start karta hai ek sharp decline ke sath neeche lower channel line. Is initial break ke baad, stock mid-May se early August tak 20-day EMA (middle line) ke qareeb resistance face karta hai. Upper channel line ke qareeb bhi ane ki naakami strong downside pressure dikhati hai. 100 ke upar move overbought mana jata hai. 100 ke neeche move downtrend ke resumption ka signal deta hai.

Ek trading range ya flat trading environment identify hone ke baad, traders Keltner Channels ka istemal overbought aur oversold levels identify karne ke liye kar sakte hain. Ek trading range ek flat moving average aur Average Directional Index (ADX) ke sath identify ki ja sakti hai.

Conclusion

Keltner Channels ek trend following indicator hain jo underlying trend identify karne ke liye design kiye gaye hain. Trend identification aadhi battle se zyada hai. Trend up, down ya flat ho sakta hai. Upar bayan kiye gaye methods ko use karte hue, traders aur investors trend identify kar sakte hain taake trading preference establish kar sakein. Bullish trades uptrend mein favored hoti hain aur bearish trades downtrend mein favored hoti hain. Ek flat trend zyada nimble approach require karta hai kyunki prices aksar upper channel line par peak aur lower channel line par trough karti hain. Jese ke sab analysis techniques ke sath hota hai, Keltner Channels ko dusre indicators aur analysis ke sath conjunction mein use karna chahiye. Momentum indicators trend-following Keltner Channels ke liye ek achha complement offer karte hain.

Keltner Channels Indicator Kya Hai?


Keltner Channels indicator aik mashhoor technical analysis tool hai jo trading mein istimaal hota hai. Yeh indicator traders ko market ke trends aur price movements ko samajhne mein madad deta hai. Keltner Channels ka aik basic function yeh hai ke yeh price movements ke daira ko identify karta hai aur traders ko market ke momentum aur volatility ka andaza lagane mein madad karta hai.


1. Muqadma


Trading mein, technical analysis ka aik ahem hissa indicators ka istemal hota hai. Indicators ko use karke traders market ke trends, volatility, aur possible reversal points ko samajh sakte hain. Keltner Channels indicator aik aisa hi tool hai jo trading decisions ko enhance karne mein madadgar hota hai. Yeh indicator mid-20th century mein Chester Keltner ne introduce kiya tha aur aaj bhi wide use mein hai.


2. Keltner Channels Ka Taaruf


Keltner Channels aik price envelope indicator hai jo price ke ird gird band create karta hai. Yeh bands market ke volatility aur trend ko samajhne mein madad karte hain. Keltner Channels ko istimaal karne ka maqsad yeh hota hai ke traders price ke extreme points ko identify kar sakein aur potential entry aur exit points ko detect kar sakein.


3. Keltner Channels Ki Tashkeel


Keltner Channels teen main components se milkar banti hain: upper band, middle band, aur lower band. Middle band aik exponential moving average (EMA) hota hai. Upper aur lower bands ko EMA se derived kiya jata hai jo Average True Range (ATR) par base hota hai. Yeh channels market ke price action ke upar aur neeche daira banate hain.


Upper Band


Upper band EMA se ATR ko add karke banaya jata hai. Yeh resistance level ko denote karta hai jo price ke upward movements ko roknay ka ishara deta hai. Jab price upper band ko touch karta hai, toh yeh overbought condition ka signal hota hai.


Lower Band


Lower band EMA se ATR ko subtract karke banaya jata hai. Yeh support level ko denote karta hai jo price ke downward movements ko roknay ka ishara deta hai. Jab price lower band ko touch karta hai, toh yeh oversold condition ka signal hota hai.


Middle Band


Middle band aik simple exponential moving average (EMA) hota hai. EMA aik aise average price ko represent karta hai jo recent price changes ko zyada weight deta hai. Yeh price ke center line ko denote karta hai aur price action ke trend ko identify karne mein madadgar hota hai.


4. Upper Band


Upper band EMA aur ATR ka combined calculation hota hai. ATR ko EMA mein add karne se upper band milta hai. Yeh band market ke resistance level ko identify karta hai. Jab price is band ke upar break karti hai, toh yeh indication hoti hai ke market mein strong uptrend hai aur price further increase kar sakti hai. Lekin agar price upper band ke kareeb pohonch kar wapas aati hai, toh yeh reversal ka bhi signal ho sakta hai.


5. Lower Band


Lower band EMA aur ATR ka combined calculation hota hai jahan ATR ko EMA se subtract kiya jata hai. Yeh band market ke support level ko identify karta hai. Jab price is band ke neeche break karti hai, toh yeh indication hoti hai ke market mein strong downtrend hai aur price further decrease kar sakti hai. Lekin agar price lower band ke kareeb pohonch kar wapas aati hai, toh yeh reversal ka bhi signal ho sakta hai.


6. Middle Band


Middle band ko EMA ke through calculate kiya jata hai. EMA market ke recent price data ko zyada weight deta hai aur is liye yeh moving average market ke trend ko accurately represent karta hai. Middle band market ke center price ko represent karta hai aur upper aur lower bands ke beech mein hota hai. Yeh band market ke overall trend ko identify karne mein madad karta hai.


7. ATR Ka Role


Average True Range (ATR) aik volatility indicator hai jo market ke price movements ki range ko measure karta hai. Keltner Channels mein ATR ka role upper aur lower bands ko calculate karna hota hai. ATR market ke price movements ki volatility ko reflect karta hai. High ATR ka matlab hai ke market mein zyada volatility hai jabke low ATR ka matlab hai ke market mein kam volatility hai. Keltner Channels mein ATR ka istimaal karke upper aur lower bands ko dynamic banaya jata hai jo market ke changing conditions ke mutabiq adjust hotay hain.


8. Trend Identification


Keltner Channels ka aik main use trend identification mein hota hai. Jab price upper band ke upar trade karti hai, toh yeh market ke strong uptrend ka signal hota hai. Iska matlab hai ke buyers market mein dominant hain aur price further increase kar sakti hai. Iske bar'aks, jab price lower band ke neeche trade karti hai, toh yeh market ke strong downtrend ka signal hota hai. Iska matlab hai ke sellers market mein dominant hain aur price further decrease kar sakti hai.


9. Breakouts Ki Pehchaan


Breakouts trading mein important hotay hain kyun ke yeh market ke strong trends aur price movements ka indication dete hain. Keltner Channels ke through price breakouts ko identify kiya ja sakta hai. Jab price upper band ke upar break karti hai, toh yeh strong bullish trend ka indication hota hai. Similarly, jab price lower band ke neeche break karti hai, toh yeh strong bearish trend ka indication hota hai. Yeh breakouts traders ko significant trading opportunities detect karne mein madadgar hote hain.


10. Volatility Measure


Keltner Channels price ki volatility ko measure karne mein bhi madadgar hote hain. Wide channels high volatility ko indicate karte hain jabke narrow channels low volatility ko. Jab market mein high volatility hoti hai, toh channels wide hotay hain aur price movements zyada extreme hote hain. Iske bar'aks, jab market mein low volatility hoti hai, toh channels narrow hotay hain aur price movements relatively calm hote hain. Yeh information traders ko market ke volatility conditions ko samajhne mein madad karti hai.


11. Reversal Signals


Keltner Channels reversal signals ko detect karne mein bhi madadgar hote hain. Jab price upper band ko touch karke wapas aati hai, toh yeh reversal signal ho sakta hai ke price downward move karegi. Similarly, jab price lower band ko touch karke wapas aati hai, toh yeh reversal signal ho sakta hai ke price upward move karegi. Yeh reversal signals traders ko potential trend changes ko detect karne mein madadgar hote hain.


12. Entry aur Exit Points


Traders Keltner Channels ko entry aur exit points identify karne ke liye bhi use karte hain. Jab price upper band ko touch karte hue wapas aati hai, toh yeh sell signal hota hai kyun ke market overbought condition mein hota hai aur price downward move kar sakti hai. Similarly, jab price lower band ko touch karte hue wapas aati hai, toh yeh buy signal hota hai kyun ke market oversold condition mein hota hai aur price upward move kar sakti hai. Yeh entry aur exit points traders ko effective trading decisions lene mein madadgar hote hain.


13. Combination with Other Indicators


Keltner Channels ko dusre indicators ke sath combine karke aur bhi effective results hasil kiye ja sakte hain. Jaise ke Relative Strength Index (RSI) aur Moving Average Convergence Divergence (MACD) ke sath combine karke trading signals ko aur zyada strong banaya ja sakta hai. For example, agar price upper band ke upar break kar rahi hai aur RSI bhi overbought condition show kar raha hai, toh yeh strong sell signal ho sakta hai. Similarly, agar price lower band ke neeche break kar rahi hai aur MACD bhi bearish crossover show kar raha hai, toh yeh strong buy signal ho sakta hai.


14. Keltner Channels aur Bollinger Bands


Keltner Channels ko aksar Bollinger Bands ke sath compare kiya jata hai kyun ke dono indicators similar functions perform karte hain. Bollinger Bands standard deviation ko use karke upper aur lower bands calculate karti hain jabke Keltner Channels ATR ko use karti hain. Bollinger Bands price ke volatility ko standard deviation ke zariye measure karti hain jabke Keltner Channels ATR ko use karke volatility ko measure karti hain. Dono indicators ka aik combination effective trading strategies banane mein madadgar hota hai.


15. Conclusion


Keltner Channels aik powerful technical analysis tool hain jo traders ko market trends aur price volatility ko samajhne mein madadgar hota hai. Yeh indicator upper, middle, aur lower bands ke zariye price movements ko track karta hai aur potential entry aur exit points ko identify karne mein madadgar hota hai. Keltner Channels ka sahi istemal trading strategies ko enhance kar sakta hai aur profit potential ko barha sakta hai. Traders ke liye yeh zaroori hai ke woh Keltner Channels ko dusre technical indicators ke sath combine karke trading decisions ko further strengthen karein. In tools ka sahi istemal trading success ke chances ko increase kar sakta hai.