Mirror Bands: Trading Moving Average Crossovers
Summary
Mirror Bands is described as an indicator similar to Bollinger Bands, with an additional mirror signal line. Its inputs are a calculation period, a moving average period, a band deviation, and the applied price. The document explains how to interpret crossings between the moving average and the mirror line: an upward cross is a long entry signal, while a downward cross is a short entry signal.
The note provides no chart, performance data, detailed formula, or rules for exits and position sizing. It therefore introduces a simple technical indicator signal rather than presenting a tested trading system. Traders would need to establish how the indicator is calculated, evaluate it on relevant data, and account for execution costs and risk before relying on the crossover rules.
Key ideas
- The indicator resembles Bollinger Bands and includes a separate mirror line.
- Its inputs control the calculation period, moving average period, band deviation, and price series.
- An upward moving-average cross above the mirror line is presented as a long signal.
- A downward cross is presented as a short signal.
- The document gives no performance evidence or guidance on exits and risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.