Keltner Channel (KC) is a forex technical indicator mostly based on volatility in operating high and low range. Showing a central moving average line plus channel lines at a distance above and below.

The indicator is named after Chester W. Keltner (1909-1998) who described it in his 1960 book How To Make Money in Commodities. But this name was applied only by those who heard about it from him. The Keltner Channel is used to signal price breakouts, show trend, and give overbought and oversold readings.

Overbought is seen when the price comes closer to the upper band, whether oversold is shown by the price approaching to the lower band.

Because the Keltner Channel was created to take advantage of volatility swings and follow market trends, it is not effective in sideways markets.

The Keltner channel indicator is primarily used by savvy investors to predict market trends. There are two bands on a Keltner channel, which are drawn above and below an exponential moving average. The Keltner channel is based on the Average True Range.