Keltner channels versus Bollinger Bands: which do you prefer?
Both draw bands around price, but Keltner uses average true range while Bollinger uses standard deviation — one measures typical range, the other statistical stretch. The choice changes which extremes you fade.
Which do you trade?
- the band you prefer and why
- how the two signal differently in squeezes
- the strategy built on your chosen band
The Bollinger guide and ATR guide cover the two constructions.
Background: Bollinger Bands explained: the squeeze, band walks and mean reversion
Bollinger Bands wrap a moving average in two volatility bands. Learn how they're calculated, what a squeeze means and why touching a band isn't a signal on its own.
What are the standard Bollinger Bands settings?
A 20-period simple moving average, with bands 2 standard deviations above and below it.
Is touching the upper Bollinger Band a sell signal?
Not on its own. In a strong uptrend price can ride the upper band for a long time. A touch shows price is stretched relative to recent volatility, which needs other evidence before it becomes a trade.
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