Historical Volatility Bands with Average Center Line and Direction Colors

Summary

This indicator description outlines a channel built around an average price line, with upper and lower bands calculated using high and low historical volatility. It distinguishes this construction from bands based on a single, regular historical-volatility measure. The description also specifies a visual convention for the center line: it takes the matching band color when the two band colors agree, and a neutral color when they differ.

The material explains the indicator's components and display behavior, but it gives no formula for calculating the high and low volatility inputs, lookback period, platform implementation, or signal thresholds. It presents no chart examples, market tests, or evidence that the bands predict returns. As a result, this is a concise description of an indicator design rather than a complete trading strategy; researchers would need to define the calculation and test its behavior before using it to make decisions.

Key ideas

• The indicator uses an average as its center line.
• Its upper and lower bands use high and low historical volatility measures.
• The center line matches the band color when both bands share a color.
• The center line turns neutral when the band colors differ.
• The description does not specify calculation periods or provide performance tests.

Tags

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