Keltner Channels follow the range of the stock in the day from the highs to the lows. It has a bit more broad of a range compared to the moving average envelope as we covered last week.
It’s quite simple:
► When the stock is trending above the Keltner Channel, stay in the stock ✓
► When the stock is trending below the Keltner Channel, GET OUT 🙅🏼♂️
It can also be used as a support and resistance zone or region, to help indicate a buy signal when it dips down ⇊