The Keltner Channels indicator is somewhat similar to Bollinger Bands and Donchian Channels in that it is used to determine overbought and oversold market conditions. The difference between Donchian Channels and Keltner Channels is that, instead of using the average price of 20 data lengths, it uses a 20 data length Exponential Moving Average +/- (2 x Average True Range) causing it to generate different trade signals than Donchian Channels.