246# Bollinger Bands and Keltner Channels

Keltner Channels are typically an alternative channel pattern used in conjunction with signals from standard envelope channels such as Bollinger Bands or Donchian Channels. Different variations for calculating the trendlines in a Keltner Channel have also been generated due to market modifications since the original Keltner Channels were introduced.

These failed signals indicated a possible trend change that was subsequently confirmed with a break above the upper channel line. As stated throughout this article, trying to say one indicator is better than another is relative.

Calculation

Keltner Channel VS Bollinger Bands. There are those that often confuse the BB and KC but they do act differently in terms of reaction to price. The big difference is the Bollinger band is calculated using a standard deviation while the Keltner uses ATR (average true range).

There are a few that appear to be mildly effective. This includes Caffeine, Green Tea and Glucomannan (a fiber that can reduce appetite). However, the results are usually weak and inconsistent and certainly nothing to get excited about.