Projection Bands

Projection Bands are calculated by finding the highest high and lowest low over the last n periods and plotting them parallel to a regression line of the high/low. The Projection Bands are support and resistance levels. When the price reaches the upper band, it signals a price top and probable reversal. Likewise, when the price reaches the bottom band, it signals a bottom. The price will never actually break above or below the bands (unlike Bollinger Bands).

See also Projection Bandwidth and Projection Oscillator. For other types of bands, see Bollinger Bands, Envelope and Price Channels.

Projection Bands were developed by Mel Widner, Ph.D and were originally introduced in his article in the July, 1995 issue of Technical Analysis of Stocks & Commodities magazine.

Formula:




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