Acceleration Bands Built from High–Low Price Range

Summary

This brief indicator description explains Acceleration Bands, attributed to Price Headley, as bands derived from the daily price range. It identifies two configurable inputs: the calculation period and a factor that controls how widely the bands expand.

The upper and lower series are formed by adjusting the high price according to the high–low range relative to the sum of high and low, scaled by the factor. A simple moving average over the selected period is then applied to each series to produce the top and bottom bands. The note provides formulas but no trading rules, chart examples, empirical tests, or guidance on interpreting band breaks. It is therefore a concise calculation reference rather than evidence that the indicator offers predictive value; users would need to test any strategy built around it.

Key ideas

• The indicator derives its bands from the daily high–low range.\nIts two settings control the smoothing period and band expansion factor.\nThe upper and lower adjusted price series are each smoothed with a simple moving average.\nThe document gives no evidence or trading rules for using the bands.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.