How to use the indicator "Keltner Channel"?

<p id="isPasted">Learn How to Calculate Keltner Channel Before Your Next ...The Keltner Channel is a technical analysis indicator that helps identify trend strength and potential overbought/oversold conditions. It's calculated using an Exponential Moving Average (EMA) and the Average True Range (ATR). Traders can use it for trend following, breakout trading, and overbought/oversold analysis.&nbsp;</p><p>Here's how to use the Keltner Channel:</p><p>1. Trend Following:</p><p>The middle line of the Keltner Channel represents the EMA, which acts as a dynamic support or resistance level.</p><p>In an uptrend, the price may bounce off the middle line, indicating a continuation of the uptrend.</p><p>In a downtrend, the price may decline from the middle line, suggesting a continuation of the downtrend.</p><p>2. Breakout Trading:</p><p>A price break above the upper channel line suggests a strong bullish momentum and a potential uptrend.</p><p>A price break below the lower channel line indicates a strong bearish momentum and a potential downtrend.</p><p>3. Overbought/Oversold Trading:</p><p>The price reaching or exceeding the upper channel line might indicate overbought conditions, potentially leading to a price retracement.</p><p>The price dropping below the lower channel line could suggest oversold conditions, potentially leading to a price rally.&nbsp;</p><p>Example:</p><p>Imagine a price that is currently trading within the Keltner Channel. If the price breaks out above the upper band, this could indicate a strong uptrend and a potential buying opportunity. Conversely, if the price breaks below the lower band, it might suggest a strong downtrend and a potential selling opportunity.&nbsp;</p>