Band Moving Average Uses Percentage Offset Lines as Support and Resistance
Summary
The Band Moving Average indicator adds two percentage-offset lines around a conventional moving average. The middle line can use a simple, exponential, or weighted moving average, while the upper and lower lines are placed above and below it by a configurable percentage. The document describes these outer lines as potential support and resistance levels, making the indicator a way to view price relative to a moving-average band.
The listed settings control the moving-average period, horizontal chart shift, averaging method, and band width. The defaults are a 49-period average and a 2% offset. The indicator is described as available for MetaTrader 4 and MetaTrader 5. No entry or exit rules, market examples, backtests, or evidence of predictive performance are provided, so the bands should be understood as a charting aid rather than a validated trading system.
Key ideas
- The indicator plots a standard moving average as its center line.
- Two additional lines are offset from the center by a configurable percentage.
- The outer lines are intended to serve as possible support and resistance references.
- Users can adjust the average period, method, chart shift, and band percentage.
- The document provides no tests or trading rules for interpreting band interactions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.