// The MIT License (MIT)
// © mihakralj
//@version=6
indicator("Keltner Channel (KCHANNEL)", "KCHANNEL", overlay=true)

//@function Calculates Keltner Channel using EMA and ATR
//@param source Series to calculate middle line from
//@param length Lookback period for calculations
//@param mult ATR multiplier for band width
//@returns tuple with [middle, upper, lower] band values
//@optimized Uses EMA with warmup and ATR with compensator, O(1) complexity per bar
kchannel(series float source, simple int length, simple float mult) =>
    if length <= 0 or mult <= 0.0
        runtime.error("Length and multiplier must be greater than 0")
    var float alpha = 2.0 / (length + 1)
    var float sum = 0.0
    var float weight = 0.0
    float ema = na
    if na(sum)
        sum := source
        weight := 1.0
    sum := sum * (1.0 - alpha) + source * alpha
    weight := weight * (1.0 - alpha) + alpha
    ema := sum / weight
    var float prevClose = close
    float tr1 = high - low
    float tr2 = math.abs(high - prevClose)
    float tr3 = math.abs(low - prevClose)
    float trueRange = math.max(tr1, tr2, tr3)
    prevClose := close
    var float EPSILON = 1e-10
    var float raw_rma = 0.0
    var float e = 1.0
    float atrValue = na
    if not na(trueRange)
        float alpha_atr = 1.0 / float(length)
        raw_rma := (raw_rma * (length - 1) + trueRange) / length
        e := (1.0 - alpha_atr) * e
        atrValue := e > EPSILON ? raw_rma / (1.0 - e) : raw_rma
    float width = mult * nz(atrValue, 0.0)
    [ema, ema + width, ema - width]

// ---------- Main loop ----------

// Inputs
i_source = input.source(close, "Source")
i_length = input.int(20, "Length", minval=1)
i_mult = input.float(2.0, "ATR Multiplier", minval=0.001)

// Calculation
[middle, upper, lower] = kchannel(i_source, i_length, i_mult)

// Plot
plot(middle, "Middle", color=color.yellow, linewidth=2)
p1 = plot(upper, "Upper", color=color.yellow, linewidth=2)
p2 = plot(lower, "Lower", color=color.yellow, linewidth=2)
fill(p1, p2, color=color.new(color.blue, 90), title="Band Fill")