Analyzing trends and determining the best way to invest is all about knowing how to do it. And there's no better way to get that expertise than by tracking Keltner Channels, a market-thrilling tool for analyzing volatility and getting a peek into the direction of a market trend.Keltner Channel uses the average true range, or ATR for short, as its measurement for volatility. If a stock's price moves within an established band or channel over time, then this indicates that buying and selling activity is relatively calm in the market and can be expected to continue. When prices move outside of these bands or channels -- signaling significant changes in momentum -- then this could be an indication that investors are beginning to take notice of the stock and they might want to consider buying before its possible correction happens.Diagram of Keltner Channel: -In the above chart there are 3 bands in Keltner Channel are as First is Upper Channel Band, Second is Middle Band and last is Lower channel Band.Markets can move in any direction, but a trend is more likely to continue when the price moves within a Keltneir Channel. These bands help you see whether there's uncertainty in the market or if you're seeing a clear pattern. You can use these channels to decide which way the market is moving and how far it's likely to go before changing course.Place indicators on either side of an asset's price and watch for clues about where the trend is going. The average-true range (ATR) shows you how volatile each day has been and breaks above or below that line mean that investors are betting on one outcome over another.
