Description
Projection Bands are drawn by finding the minimum and maximum prices over a specified number of days and projecting these forward, parallel to a linear regression line. The resulting plot consists of two bands representing the minimum and maximum price boundaries.
As opposed to the Bollinger Bands® study, prices will always be contained by the two bands. The upper band represents a bullish view on the issue and the lower band a bearish one. When the price of an issue nears the upper limit, expect a price correction. If the price is nearing the lower limit, expect prices to move upwards.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate the Projection Bands. |
Plots
| Plot | Description |
|---|---|
MaxBound
|
The upper Projection Band. |
MinBound
|
The lower Projection Band. |
Bollinger Bands® is a registered trademark of John Bollinger.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.