Charting
and Historical Backtesting Software by Ashkon Technology LLC
Interpretation:
A buy signal is
generated when stock price reaches the upper band.
A sell signal is
generated when stock price reaches the
lower band.
Calculation:
Parameters: n - number of days, P
- percentage shift
Notes:
Very similar to Bollinger
Bands. The logic behind is that greedy buyers and sellers tend to push
the price to the boundaries of the security's normal trading range.
