The Keltner channel is an N-day simple moving average (see 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.
This indicator was described by Chester W. Keltner in his 1960 book 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 indexes 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).
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Chart is free software; you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 3, or (at your option) any later version.