Indicator Description

KC (Keltner Channel) is a volatility indicator that reflects the market's volatility range and trend changes by calculating the middle line of price and the upper and lower bands based on ATR.

Function Information

• Function Name: KC
• Input Parameters: High, Low, Close
• Parameter Settings: timeperiod1 (default: 21), timeperiod2 (default: 13)
• Output: up, low

Calculation Principle

KC is calculated using the following formula:

MID = MA(Close, timeperiod1)
UPPER = MID + ATR(timeperiod2) * 2
LOWER = MID - ATR(timeperiod2) * 2

Where MA is the moving average and ATR is the Average True Range.

Usage Scenarios

1. Volatility range judgment
2. Overbought and oversold analysis
3. Trend strength confirmation
4. Trading signal generation

Usage Recommendations

1. Price breaking above the upper band can be seen as a sell signal
2. Price breaking below the lower band can be seen as a buy signal
3. Use in combination with the middle line
4. Pay attention to changes in channel width