Projection Bands
October 12, 2015, 8:08 PM
Indicators
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Projection Bands were developed by Mel Widner, Ph.D. They were originally introduced in the July 1995 issue of Technical Analysis of Stocks & Commodities magazine.
Projection Bands are similar in concept to other types of bands. They also share some of the characteristics of channel lines such as Raff Regression Channels.
Projection Bands are plotted by finding the minimum and maximum prices over the 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.
Prices will always be contained by the bands, unlike Bollinger Bands.
Parameters
Period (n = 14)
REM Parameters:
REM Nbr of Periods (n = 14)
LS = LINEARREGRESSIONSLOPE[n](HIGH)
ub = HIGH
lb = LOW
FOR k = 1 TO n
ub = MAX(ub, HIGH[k] + k * LS)
lb = MIN(lb, LOW[k] - k * LS)
NEXT
RETURN ub, lb
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Filename:
Projection-Bands.itf
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