Classic Chart Indicators and Studies
Find descriptions, formulas, parameters, and other help for the indicators and studies used by the Barchart.com Classic Charting application below.
When charting any of the studies, the argument coloring is red, green then blue. For example, on a Moving Average chart [9, 18, 40], the 9 day would be the red line, 18 day would be the green line and the 40 day would be the blue line. The argument order is displayed on the chart next to the study name.
The Keltner Channel is a volatility based envelope technique based on the range of HIGH to LOW daily.
First, a coefficient named "MA_periods" is defined to hold the number of periods to be used in the moving averages required for the Keltner Channel.
Then, a "typical" price is computed by summing the HIGH, LOW and CLOSE and dividing by three.
"MA_typical", a simple moving average of the typical price, is then computed using the number of periods held in "MA_periods".
"Diff" is the range for the day. "MA_Diff" is a moving average of "Diff", also using "MA_periods".
The "Upper" channel is calculated by adding the "MA_Typical" and "MA_Diff" together. The "Lower" channel is a subtraction of "MA_Diff from MA_Typical.
If the price breaks out of either the upper or lower band this is interpreted as a continuation signal not a reversal signal.