Band Moving Average Support and Resistance Bands

Summary

The Band Moving Average indicator plots a standard moving average as its center line and adds upper and lower bands at a fixed percentage offset. The default offset is 2%, and the center average can use simple, exponential, or weighted calculation. The period defaults to 49, while the horizontal shift defaults to zero.

The outer lines are presented as potential support and resistance levels around the moving average. The document explains the indicator's construction and inputs but provides no trading rules, chart examples, performance evidence, or guidance for choosing a band width. Because the bands use a fixed percentage distance, their spacing does not adapt to changing volatility; traders would need to evaluate whether that design suits the instrument and timeframe they use.

Key ideas

• The indicator uses a standard moving average as its center line.
• Upper and lower lines are offset from the center by a configurable percentage, defaulting to 2%.
• The average method can be simple, exponential, or weighted.
• The document describes the indicator's inputs but gives no performance evidence or entry and exit rules.

Tags

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