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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (54765)	1/13/2022 7:51:05 PM
From: E_K_S	Read Replies (2) \| Respond to of 69749

Keltner Bands smooth the volatility and when I look at daily (even weekly) charts provide an excellent guide for long term Buy/Sell points I set my Keltner channel (20, 5,1) period = 20 ATR Period = 5 ATR Factor = 1 I have them come up on all my charts on my Street Smart Edge platform. Keltner Bands are very similar to Bollinger Bands but it smooths the channel wave. I also plot the Bollinger Bands (use the same set point 20,5,1) and almost always the Keltner Channel is inside the Bollinger channel. Stocks on a longer term upside trend tend to trade above the top channel band and that band tends to be support. Any break of the channel reflects a change of trend. I look for a break up into the channel at the same time the SMA(50) (or any SMA time period) breaks up into that channel at the same period as a BUY. Also, anytime the price hits the bottom channel is a good entry Buy point especially if it has traded inside the Keltner Channel for some longer period of time. If it is a stock I want to own and accumulate, that is where I set my buy point (at/near the lower Keltner band). ------------------------------------------------------------------ Perhaps, that has made me more patient on my buys and doing that I have gotten my best buys, typically waiting a few days. If it breaks through that point, you either follow thru on the Buy and expect it to snap back or just wait to see if that was a change of trend signal. I started using the Keltner Bands about 2 years ago. You can look up the mathematical definition but basically it smooths out the volatility component based on a set standard deviation ATR factor.