Wealth-Lab Wiki

API ChartStyles Community Components Community Indicators IndexDefinitions Knowledge Base Misc Optimizers Pending Deletion PosSizers Providers Standard Indicators TASC Traders Tips TASCIndicators Tutorial Videos Visualizers
RSS

Navigation


Quick Search
»
Advanced Search »


Projection Bands

RSS

Projection Bands

Syntax


public PBandUpper(Bars bars, int period, string description)
public static PBandUpper Series(Bars bars, int period)

public PBandLower(Bars bars, int period, string description) public static PBandLowerSeries(Bars bars, int period)

Parameter Description

bars Bars object
period Lookback period

Projection Oscillator


public PBFastOsc(Bars bars, int period, int FSmooth, string description)
public static PBFastOsc Series(Bars bars, int period, int FSmooth)

public PBSlowOsc(Bars bars, int period, int FSmooth, int SSmooth, string description) public static PBSlowOsc Series(Bars bars, int period, int FSmooth, int SSmooth)

Parameter Description



bars Bars object
period Lookback period
FSmooth First smoothing period
SSmooth Second smoothing period

Description

Wealth-Lab code adaptation by jmm. Library code version by fundtimer.

This functions calculate the Widner projection bands and the projection oscilator, created by Mel Widner.

These bands differ from the other bands/channels/envelopes because they use the linear regression slope to predict the possible future evoluction of the trading range, and this produces a different and useful kind of bands.

Since all the prices are between the two bands, it is possible to calculate a stochastic indicator, the "projection oscilator" with similar characteristics of the traditional stochastic oscilator.

Interpretation

Projections Bands are used much like other types of bands. When prices are at or near the upper band, extreme bullish sentiment is indicated - expect prices to drop to more rational levels. Alternatively, when prices are at or near the lower band, the security is in strong bearish mood -- look for prices to move up.

It is recommended that all band generated signals be confirmed by other indicators. During trends, bands can be used to trade short-term reactions against the primary trend. In rangebound markets, bands can be used to trade overbought/oversold levels.

The Projection Oscillator is a by-product of Dr. Mel Widner's Projection Bands. Since it's basically a linear regression slope-adjusted Stochastic, the Projection Oscillator shows the relationship of the current price to its minimum and maximum prices over time but, unlike its predecessor, these levels are adjusted up or down by the slope of the price's regression line.

As with other oscillators, here are some typical usage patterns:

  • Crossovers at overbought/oversold levels: Buy when the oscillator falls crosses above a specific level (e.g., 20), sell when it crosses below a specific level (e.g., 80).
  • Divergences: Sell if prices are making a series of new highs but the oscillator fails to surpass its previous highs, and vice versa.

Example


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;

namespace WealthLab.Strategies { public class MyStrategy : WealthScript { protected override void Execute() { PBandUpper pbu = PBandUpper.Series( Bars, 14 ); PBandLower pbl = PBandLower.Series( Bars, 14 ); PlotSeriesFillBand( PricePane, pbu, pbl, Color.Blue, Color.FromArgb( 30, Color.Purple ), LineStyle.Solid, 1 ); } } }

Important Disclaimer: The information provided by Wealth-Lab is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security.  The owner of Wealth-Lab.com assumes no liability resulting from the use of the material contained herein for investment purposes. By using this web site, you agree to the terms of this disclaimer and our Terms of Use.

Used under license from FMR Corp. Copyright 2008 FMR Corp. All rights reserved.


ScrewTurn Wiki. Some of the icons created by FamFamFam.