Channel trading indicator STARC bands Is a variation of the well-known Stoller middle range channels made for the MetaTrader 5 trading terminal.
The STARC bands indicator plots three lines that form a channel around a regular moving average. These three lines:
- n-period SMA (simple moving average);
- top line, n-period SMA plus m-period ATR multiplied by the constant K;
- bottom line, n-period SMA minus m-period ATR multiplied by K.
The STARC Bands indicator typically defines the upper and lower limits for normal price movement. However, some traders use the indicator to determine the level of risk before entering the market.
Differences from the original indicator:
- two stripes (not just one) drawn as a filled channel;
- you can use any of the four basic moving average types to calculate major STARC levels and to calculate ATR. Thus, we can get options that are not provided by the original indicator;
- a set of 22 types of prices is provided for calculations;
- there is a possibility to change the timeframe in the input parameters.
Channel trading indicator STARC bands for MT5, it is an effective alternative to Bollinger Bands in strategies focused on channel trading.
Other technical indicators for MetaTrader 5