Keltner Channels

Keltner Channels
Keltner Channels are explained in the book The New Commodity Trading System and Methods by Perry Kaufman and were first introduced in the book How to make money in commodities, from Chester Tues Keltner. The syntax of formulas in MetaStock ™ are:
Formula # 1:
Name: 10-Day Moving Average:
Formula: MOV ((H + L + C) / 3, 10, simple)
Formula # 2:
NAME: Upper Keltner Band
Formula: MOV ((H + L + C) / 3,10, S) + MOV ((H-L), 10, M)
Formula # 3:
NAME: Lower Keltner Band
Formula: MOV ((H + L + C) / 3,10, S) - MOV ((H-L), 10, M)
** All three formulas must be plotted.

The system tester, buy or COVER SHORT signal will occur when
C> Upper Keltner Band
Sales and sell or short signal will occur when
Tues <Lower Keltner Band
** Thus, the system is always either long or short.
For interpretation refer to either of the two books mentioned above.