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Keltner Channels
MetaStock Trading System
Keltner Channels are explained in the book The New Commodity
Trading System and Methods by Perry Kaufman and were first
introduced in the book How To Make Money in Commodities, by
Chester W. Keltner. The syntax for the formulas in MetaStock are:
| Formula #1 |
|
| Name: The 10-Day
Moving Average |
| Formula: MOV( (H+L+C)/3,
10, Simple ) |
|
| Formula #2 |
|
| Name: Upper Keltner
Band |
| Formula: MOV((H+L+C)/3,10,S)
+ MOV((H-L),10,S) |
|
| Formula #3 |
|
| Name: Lower Keltner
Band |
| Formula: MOV((H+L+C)/3,10,S)
- MOV((H-L),10,S) |
|
** All three formulas must be plotted.
In the System Tester, a BUY or a COVER SHORT Signal would occur
when
C > Upper Keltner Band
and a SELL or a SELL SHORT Signal would occur when
C < Lower Keltner Band
** Thus, the system is always either long or short.
For interpretation refer to either of the two books listed above.
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