Forex encyclopedia

Keltner Channel is an indicator of technical analysis, which is similar to Bollinger's. The indicator is based upon moving averages in the form of median moving value and an envelope, width of which is defined by change of price for an interval. This method was published in 1960 year in the book “How to make money in commodities” written by Chester W. Keltner. Later this indicator was updated by Linda Raschke with various averaging periods (exponential moving value) as well as by an Average True Range invented by Wilder for bands. Keltner Channel are used as signals of price breaks, figures of tendency, overbought and oversold figures for an asset. Such difference is crucial but despite that fact all those figures are called Keltner Channel thereby confusing everybody.

Putting price and time zones on chart under W.D. Gann method is called “squaring”. The box can be built through squaring of both price and time. The best performing square is the square built according to Gann's arithmetic patterns. As per Gann methodology, box is a pattern chart. Those charts are called pattern charts, because for building them Gann takes a certain size along X and Y, size of charts is closely connected with Gann cycles. The most popular pattern charts are “Square 4”, “Square 144” and “Square 360” a full cycle. The number in name of chart means the number of periods as per price and time. There are a few ways of building those charts.