Acceleration Bands were developed by Price Headley. These bands serve as a trading envelope using an instrument’s typical volatility over a standard setting of 20 bars. The user may change the input (close), period length, and multiplier factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the Acceleration Bands
No trading signals are calculated for this indicator.
How To Access in MotiveWave
Go to the top menu, choose Study>Overlays>Acceleration Bands
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is close
//period = user defined, default is 20
//factor = user defined, default is .001
//sma = simple moving average
H = getHigh(index); L = getLow(index); ub = (H*(1+2*((((H-L)/((H+L)/2))*1000)*factor))); lb = (L*(1-2*((((H-L)/((H+L)/2))*1000)*factor))); Plot1: top = sma(index, period, UB); Plot3: bottom = sma(index, period, LB); Plot2: middle = sma(index, period, input);