ProjectionBands

Description

Projection Bands are drawn by finding the minimum and maximum prices over a specified number of days and projecting these forward, parallel to a linear regression line. The resulting plot consists of two bands representing the minimum and maximum price boundaries.

As opposed to the Bollinger Bands® study, prices will always be contained by the two bands. The upper band represents a bullish view on the issue and the lower band a bearish one. When the price of an issue nears the upper limit, expect a price correction. If the price is nearing the lower limit, expect prices to move upwards.

Input Parameters

Parameter Description
length The number of bars used to calculate the Projection Bands.

Plots

Plot Description
MaxBound The upper Projection Band.
MinBound The lower Projection Band.

Bollinger Bands® is a registered trademark of John Bollinger.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

  Past performance is no guarantee of future performance.