STARC Bands

STARC Bands is a type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset's price.

STARC Bands

STARC Bands is a type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset's price.

 


STARC Bands Calculation

The upper band is created by adding a value of the average true range (ATR) - a popular indicator used by technical traders - to the moving average. The lower band is created by subtracting a value of the ATR from the SMA.

Upper STARC band = SMA + ATR*

Lower STARC band = SMA - ATR*

* The average true range (ATR) is generally multiplied by a user-specific multiplier factor before being added/subtracted from the SMA.


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