Acceleration Bands — Indicator by vitvlkv

bands

Price Headley\'s Acceleration Bands serve as a trading envelope that factor in a stock\'s typical volatility over standard settings of 20 or 80 bars. They can be used across any time frame, though Headley prefers to use them most across weekly and monthly timeframes as breakout indicators outside these bands, while using the shorter time frames to define likely support and resistance levels at the lower and upper Acceleration Bands. Acceleration Bands are plotted around a simple moving average as the midpoint, and the upper and lower bands are of equal distance from this midpoint.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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Want to use this script on a chart?

study("Acceleration Bands", overlay=true)
factor= input(0.001)
length = input(20)
Upperband = high * ( 1 + 2 * (((( high - low )/(( high + low ) / 2 )) * 1000 ) * factor ))
Lowerband = low * ( 1 - 2 * (((( high - low )/(( high + low ) / 2 )) * 1000 ) * factor ))
Central = (Upperband  + Lowerband) / 2

ma(src, len) => sma(src, len)

plot(ma(Upperband, length), color=red)
plot(ma(Central, length), color=orange)
plot(ma(Lowerband, length), color=red)