Keltner Channels is a volatility indicator that helps identify overbought and oversold levels relative to a moving average, especially when the trend is flat. It can also provide clues for new trends. Think of the channel like an ascending or descending channel, except it automatically adjusts to recent volatility and isn’t made up of straight lines. Keltner Channels show the area where a currency pair normally hangs out. The channel top typically holds dynamic resistance while the channel bottom serves as a dynamic support.