Keltner Channel

Calculate ATR-based volatility envelopes with upper, middle, and lower bands. The Keltner Channel rule creates a dynamic price channel by adding and subtracting a multiple of a range value (typically ATR) from the source price. This produces smooth, volatility-adaptive bands that are ideal for trend-following entries, volatility squeeze detection, and dynamic support and resistance levels.

How It Works

The Keltner Channel rule computes three band values from the source input and a connected range value:

• Middle Band — The current value of the source input. This serves as the centre line of the channel and typically represents the current price or a moving average of the price.
• Upper Band — The middle band plus the range value multiplied by the configured multiplier. This represents the upper volatility envelope. Price reaching or exceeding this level may indicate strong upward momentum or an overbought condition.
• Lower Band — The middle band minus the range value multiplied by the configured multiplier. This represents the lower volatility envelope. Price reaching or falling below this level may indicate strong downward momentum or an oversold condition.

The Range Value input is typically connected to the ATR output of an ATR rule, which provides a smoothed volatility measurement. However, you can connect any numeric value as the range, allowing you to build custom channel calculations based on different volatility measures or fixed distances.

The Multiplier controls how wide the channel is relative to the range value. A multiplier of 2 means the upper and lower bands are each 2x the range value away from the middle band. Higher multipliers produce wider channels that price touches less often; lower multipliers produce tighter channels with more frequent touches.

Inputs

Input	Description	Required	Default
Source	The numeric data series that forms the middle band of the channel. Typically connected to a close price or a moving average output. The upper and lower bands are calculated relative to this value.	Yes	—
Offset	The number of bars to look back into the historical series before returning the values. An offset of 0 returns the current values, 1 returns the previous bar's values, and so on.	No	0
Range Value	The volatility measure used to calculate the distance between the middle band and the upper and lower bands. Typically connected to the ATR output of an ATR rule, but can be any numeric value representing the desired channel width base.	Yes	—
Multiplier	The factor by which the Range Value is multiplied to determine the distance of the upper and lower bands from the middle band. A multiplier of 2 means each band is 2x the Range Value away from the middle. Higher values create wider channels; lower values create tighter channels.	No	2

Outputs

Output	Description	List
Lower Band Value	The lower Keltner Channel band, calculated as the source minus the range value times the multiplier. Price at or below this level may indicate oversold conditions or strong downward momentum.	No
Middle Band Value	The middle Keltner Channel band, equal to the source value. This serves as the channel centre line and trend direction reference.	No
Upper Band Value	The upper Keltner Channel band, calculated as the source plus the range value times the multiplier. Price at or above this level may indicate overbought conditions or strong upward momentum.	No

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