Description
The Standard Error Bands study is a trend-following technical indicator. Two averages are calculated for this study: SMA of Linear Regression Curve and that of standard error of price. After that, the first average is shifted up and down by the second value multiplied by the specified number.
When the market is trending and Standard Error Bands are contracting, one can expect the current trend to continue. When the bands are expanding, the current trend might terminate and go sideways or reverse.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price for which the standard error and Linear Regression Curve are calculated. |
lin reg length
|
The number of bars for which the standard error and Linear Regression Curve are calculated. |
sm length
|
The number of bars for which the averages are calculated. |
displace
|
The displacement of the study, in bars. Positive values signify a backward displacement. |
num dev dn
|
The multiplier for the standard error SMA used in the downward shift calculation. |
num dev up
|
The multiplier for the standard error SMA used in the upward shift calculation. |
Plots
| Plot | Description |
|---|---|
MidLine
|
The Linear Regression Curve SMA plot. |
LowerBand
|
The lower Standard Error Band. |
UpperBand
|
The upper Standard Error Band. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.