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MetaStock
Trading System - Keltner
Channels
rev. 01/06/97
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. |
