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N-day highest high, N-day lowest low, and a midpoint line between them.

The N days start from yesterday, so a day which is a new N-day high or N-day
low will break out of the channel.  This is taken as a bullish or bearish
signal (respectively).

@subsection Additional Resources
@itemize
@item
@uref{http://www.linnsoft.com/tour/techind/donch.htm} -- sample graph of Intel
(symbol @samp{INTC}) from July-September 2001 (year not marked, but is 2001).
@end itemize


@c ---------------------------------------------------------------------------
@node Ichimoku Kinko Hyo, Keltner Channel, Donchian Channel, Channels and Boxes
@section Ichimoku Kinko Hyo
@cindex Ichimoku kinko hyo

@cindex Ichimoku Sanjin
@cindex Sanjin, Ichimoku
@cindex Hosoda, Goichi
Ichimoku kinko hyo by journalist Goichi Hosoda (writing under the pseudonym
``Ichimoku Sanjin'' the 1930s) is a set of indicator lines designed to show
the overall state of the market.  The name in Japanese means roughly ``chart
equilibrium at a glance''.

@table @asis
@item Tenkan (orange) and Kijun (red)
The tenkan line shown in orange is the midpoint of the past 9-day trading
range, and the kijun line shown in red is a similar midpoint but of a slower
26 day period.  A crossing of the tenkan up through the kijun is taken as a
bullish signal, or conversely a downwards crossing is bearish.  This is
similar to fast/slow moving average crossing systems, but using range
midpoints.

@item Senkou cloud (green)
A senkou or ``cloud'' region is shown between green lines.  One line is the
average (the mean) of the tenkan and kijun, the other is the midpoint of the
52 day trading range.  But these lines are drawn 26-days ahead, and thus
extend out past the end of the latest data.  The idea is that the present
values of those are predicted to have a future influence.

The cloud adds to the bullishness or bearishness of the tenkan/kijun
crossovers.  A bullish cross while above the cloud is a strong buy signal,
whereas within the cloud it's only a normal buy, or below the cloud a weak
buy.  Conversely a bearish cross is a strong sell if below the cloud, normal
within, or weak if above.  The cloud region beyond current data is also
interpreted as prospective future support/resistance.

@item Chikou (blue)
The chikou line drawn in blue is closing prices shifted back 26 days.  It's
interpreted relative to those past prices, with chikou above being bullish or
below being bearish.  This is similar to the kind of comparison momentum makes
(@pxref{Momentum and Rate of Change}).
@end table

The time periods of 9 days and 26 days are parameters in Chart (@pxref{View
Style}).  When Hosoda designed the system Japanese markets traded 6 days a
week, so 9 days was @m{1 1\over2,1 1/2} trading weeks and 26 days was a month.
The same calendar times in today's 5 day weeks can be had with 7 and 22 days.

@cindex Range Midpoint
@anchor{Range Midpoint}
@subsection Range Midpoint

An N-day range midpoint like the tenkan, kijun and cloud lines is also
available separately as ``Range Midpoint'' if you want to experiment.  It's
under ``Low Priority'' in the averages list.


@c ---------------------------------------------------------------------------
@node Keltner Channel, Kirshenbaum Bands, Ichimoku Kinko Hyo, Channels and Boxes
@section Keltner Channel
@cindex Keltner channel
@cindex Channel, Keltner

@cindex Keltner, Chester W.
The Keltner channel is an N-day simple moving average (@pxref{Simple Moving
Average}) of ``typical price'' (which is (high+low+close)/3), and bands drawn
above and below that at a distance which is the simple moving average of daily
ranges (high to low) in the period.

@cindex Ten-day moving average trading rule
This indicator was described by Chester W. Keltner in his 1960 book @iquot{How
To Make Money in Commodities}, and those who learnt of it from him apparently
gave it the name Keltner Channel.  Keltner himself called it the ``Ten-Day
Moving Average Trading Rule'' and never claimed any originality for the idea
-- it may have come from grain traders in the 1930s, or even earlier.

The idea is that closes outside the channel suggest strong bullish (or strong
bearish) sentiment and can be bought (or sold).  The 10-day period is a
parameter in Chart.

The channel bands need daily high/low data, so when that's not available (a
few indices for instance) they can't be drawn.  The centre line is still shown
(it ends up as just a simple moving average of the closes).


@c ---------------------------------------------------------------------------
@node Kirshenbaum Bands, Parabolic SAR, Keltner Channel, Channels and Boxes
@section Kirshenbaum Bands
@cindex Kirshenbaum bands
@cindex Average
@cindex Moving average
@cindex Variance
@cindex Deviation
@cindex Standard error

@cindex Kirshenbaum, Paul
Kirshenbaum bands are channel lines drawn around an exponential moving average
(@pxref{Exponential Moving Average}).  The channel width is a multiple of the
``standard error'' from a linear regression of a past N days (@pxref{Linear
Regression}, and the EMA is smoothed using the same N days.

Kirshenbaum bands are similar to Bollinger bands (@pxref{Bollinger Bands}),
but with a linear regression standard error (stderr) instead of a standard
deviation (stddev, @pxref{Standard Deviation}).  The difference is that stddev
takes no account of a trend, so the Bollinger channel widens when a trend is
in progress.  But stderr is based on deviation from a fitted sloping line, so
if prices are making steady progress up or down the channel width remains