The Series of Technical Analysis Studies Chapter 4: “Keltner Channel”

What is Keltner Channel?
Originally developed by Chester Keltner in the late 1950’s, the Keltner channel indicator belongs to a family of Technical analysis tools called envelop indicators. Keltner Channels are volatility-based envelopes set above and below an exponential moving average. This indicator is similar to Bollinger Bands, which use the standard deviation to set the bands.

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The Series of Technical Analysis Studies Chapter 3: “Average True Range”

What is an Average True Range?

The average true range is a volatility indicator. It measures the average of true price ranges over time. The True Range is the greatest distance between today’s high to today’s low, yesterday’s close to today’s high, or Yesterday’s close to today’s low.

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The Series of Technical Analysis Studies Chapter 1: “Simple Moving Average”

What is a Simple Moving Average?
A Simple Moving Average (SMA) is an arithmetic moving average calculated by adding the closing price of the security for a number of time periods and then, dividing this total by the number of time periods. SMA is basically an average stock price over a period of time.

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The Series of Technical Analysis Tools Chapter 4: “Price Channel”

What is a Price Channel?
The price channels are basically two parallel lines, drawn above and below the price security. The upper line is set at the period high, and the lower line is set at the period low. So, for a 20 days price channel, the upper channel would be equal to 20 day high, and the lower channel would be equal to 20 day low.

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