VOLATILITY INDICATOR
Keltner Channel
Places ATR-based envelopes around an exponential average.
Start with the input, not the story.
Direction through the centre EMA and recent range through ATR envelopes.
Plain-language formula
EMA plus and minus an ATR multiple.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Trend continuation, volatility expansion and squeeze comparisons.
04 / WEAK REGIME
Where it struggles
Low-liquidity spikes and over-optimised multiples.
Add a different measurement.
Bollinger BandsRSIADX / DMI
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Assuming a channel break is significant without a close or regime rule.
A testable next step
Compare touches, closes and pullbacks after closes as three separate setups.