I am at rest so I will now add my first chart to show a real life senario of the Keltner channel prediction approach.
Study the chart below.
There are 2 separate predictions.
Each one has a little vector diagram in the top corner.
My Keltner channel has been manually coloured full grey in Microsoft Paint to allow ease of clarity.
The middle Keltner band is easy to see this way - it is yellow.
The middle Bolinger band is
blue. (can you see it?)
Further notes below the chart >>>
By
tymen1 at 2008-03-15
>>> In the 1st prediction you can see that the middle BB (
blue line) is going
up and also the MACD is going
up.
Hence the resultant is UP and the candles are green and right on the
upper keltner channel.
In the 2nd prediction, the middle Bolinger band (BB) (
blue line), is basically
level and the MACD is going
down rather rapidly.
Hence the resultant is going
down too, and the candles are red and hovering
between the lower keltner channel and the middle keltner channel.
The reason for the hovering
between is because one of the vectors in the 2nd case is
level.
Had
both vectors been going
down, the candles would have been walking the
lower channel.
From here on I use BB to mean Bolinger bands
and
KC to mean Keltner channel