Chicago grain trader behind Keltner Channels
Chester W. Keltner
Chester W. Keltner (1909-1998) was a Chicago grain trader who described what he called the 'ten-day moving average trading rule' in his 1960 book How to Make Money in Commodities. The technique, now known as Keltner Channels, plots a 10-day average of typical price with bands set by the 10-day average daily range. Keltner made no claim to have originated it.
What they argue
- A 10-day average of the typical price ((high+low+close)/3), bracketed by the 10-day average daily range, describes the short-term trend.
- A close above the upper line is a buy signal and a close below the lower line a sell signal - trade with the break.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Keltner channel breakout
Rule and full recordBreakouts & channels · daily · with Linda Bradford Raschke
A channel two average true ranges above and below a 20-day EMA. A close above the top says the trend has room to run.
Best risk-adjusted results against buy and hold: