The Keltner Channel is a technical analysis tool that consists of a central moving average line (typically the Exponential Moving Average, or EMA) surrounded by two bands. These bands are calculated using the Average True Range (ATR) to account for volatility, with the upper band set above the EMA and the lower band set below it. Traders use the Keltner Channel to identify trends, potential reversal points, and overbought or oversold conditions. When prices consistently touch the upper band, it may indicate an uptrend, while touching the lower band might suggest a downtrend.