Starc Bands

Starc Bands are overlays used in conjunction with Bollinger Bands® to create trading signals. Starc bands are calculated by adding/subtracting a multiple of Average True Range (ATR) from a simple moving average. Bollinger Bands® are similar except standard deviation is used in place of ATR. The user may modify the input (close), method (SMA), periods and multipliers. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using Starc Bands

Adjust the band widths with multiplier factors to control the quantity and quality of the trading signals. The trend is calculated from the slope of the ma. If a high goes above the bands and it is a down trend a sell signal is generated. Conversely, a buy is given if a low goes below the bands and it is in an up trend.

How To Access in MotiveWave

Go to the top menu, choose Study>Bands>Starc 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 closing price)
//method = moving average (user defined, default is SMA)
//atr = average true range
//ma = moving average
//bb = bollinger bands
//prev = previous, index = current bar number
//MT = more than, MOE = more or equal
//LT = less than, LOE = less or equal
//mult = multiplier factor

Plot1: ma = ma(method, index, maPeriod, input);
atr = atr(atrPeriod);
atr = atr * atrMult;
Plot2: upperStarc = ma + atr;
Plot3: lowerStarc = ma - atr;
bb[] = bollingerBands(bbPeriod, bbMult, bbMult, input);
Plot4: bb[0];   //bbTop
Plor5: bb[1];  //bbBottom
//Signals
prevMa = ma[index-1];
sell = prevMa MT ma AND high MT bb[0] AND high MT upperStarc AND sellStock;
buy = prevMa LT ma AND low LT bb[1] AND low LT lowerStarc AND buyStock;
if (sell) sellStock = false; buyStock = true;
if (buy) sellStock = true; buyStock = false;