Kirshenbaum Bands: Regression Error Around a Moving Average

Summary

Kirshenbaum Bands are described as an upper and lower price envelope built from an exponential moving average and a range derived from standard error around a hypothetical linear regression line. The standard error supplies the distance used to place the bands above and below the average, linking the indicator to the dispersion of prices relative to a fitted trend.

The document notes a variation in which the central average can be selected from simple, exponential, smoothed, or linearly weighted moving averages. It says the bands can be used in a manner similar to Bollinger Bands, but does not specify trading rules, parameter settings, or how to interpret particular touches or crossings. No market examples or performance evidence are provided, so the description introduces the construction and broad usage rather than establishing an effective strategy.

Key ideas

• The indicator places bands around a moving average using a range based on regression standard error.
• The original description uses an exponential moving average as the center line.
• Alternative center lines include simple, smoothed, and linearly weighted averages.
• The bands are presented as usable in a way similar to Bollinger Bands.
• The document supplies no entry rules, parameter guidance, or performance results.

Tags

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