Keltner Channels and Chaikin Oscillator

A trader can choose to study less popular technical indicators after studying many technical indicators for analysis which are foundations of most of them. It is also better to discuss the less popular and less famous indicators as additional options for technical use. This article will discuss the Keltner Channels and Chaikin Oscillator which also gains a lot of followers.

Keltner Channels The first person to introduce Keltner Channels is Chester W. Keltner. He developed this and published a book entitled, How To Make Money in Commodities. The Keltner Channels are similar to the Bollinger bands because they are also a band of moving averages. The channels and the bands actually have a huge similarity. There are two lines outside and one line in the middle.

Keltner Channels The Keltner Channels is also a good channel to study. This is used in many markets and utilized by all kinds of trader. The use of this channel was first applied by Chester W. Keltner and was later given modifications by the famous trader for futures, Linda B. Raschke. She changed its application to include an accounting of the calculation of the true range of the averages for ten times or period. This resulted in several similarities with the Bollinger bands.

This also is a good indicator which is based on volatility. The disparity between the keltner and the bolliger bands is that the keltner channels shows volatility through the low and high prices. The Bollinger bands depend highly on the calculation of the standard deviation. Nevertheless, these studies bear almost the same interpretation and trade signals for the forex market.

The Keltner channels just like the Bollinger signals can be made when the action of the prices breaks below or just above the bands. However, as soon as the actions of the prices break either above or below the bottom and top boundaries, a continuance are most likely over retracing back to the other side of the boundary or going to the middle.

Chaikin Oscillator Marc Chaikin created the concept for Chaikin Oscillator. This is an interesting study among the lesser popular indicators. It checks the movement of the money that enters and exits the forex market. It then computes and then shows the differences between the exponential moving averages for three periods and the one which covers ten periods. It gives the comparison between the flow of the money and the action of the prices. This gives the chartist the chance to realize the highs and the lows in a short cycle.