Custom Formula Collection

Keltner Channels

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 MetaStockTM are

The 10-Day Moving Average:
MOV( (H+L+C)/3, 10, Simple )

Upper Keltner Band
MOV((H+L+C)/3,10,S) + MOV((H-L),10,S)

Lower Keltner Band
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.

For additional help with formulas, please see the Formula Primer.

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