Acceleration Bands

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.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//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);