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Keltner channel

An EMA with bands a number of ATRs away.

Similar to Bollinger Bands but based on ATR, so the bands are smoother. Price closing above the upper band is a common breakout rule.

In TradeXtool

Entry: Price close crosses above Keltner(20, 1.5) upper.

Watch out

In quiet markets the bands are narrow and small moves already look like breakouts.

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