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Dynamic High/Low Percentage Band Overlay Calculation

Article MQL5 code base
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Summary

The Dynamic High/Low Percentage Band Overlay defines two price bands from the highest and lowest prices within a lookback period. It differs from a related high/low band indicator by progressively narrowing the channel across the range according to an expansion parameter.

The calculation uses the range maximum, minimum, their positions within the period, and the expansion setting to determine the upper and lower bands. The indicator has two inputs: period and expansion. The document provides formulas and definitions for these quantities, but no trading rules, performance evidence, or guidance for choosing parameter values. Its usefulness is therefore as a description of an indicator calculation rather than evidence of a profitable strategy.

Key ideas

  • The indicator constructs upper and lower bands from the high and low prices over a selected period.
  • The expansion parameter controls how the channel narrows across the price range.
  • The calculation also uses the positions of the period's maximum and minimum values.
  • The document explains the formula but gives no performance tests or trading rules.

Tags

Technical indicators

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