Moving Average Bandwidth Study

By Samantha Baltodano

What Is Moving Average Bandwidth?

The Moving Average Band Width indicator is based on the Moving Average Bands study. Instead of examining the interaction of the lines (which is the case in the original indicator), Moving Average Band Width measures the distance between the upper and the lower band.

Low readings of the indicator signify narrowing of the bands, which, in turn, can signify change in the current trend. You can compare the current indicator readings with the running display of the lowest reading for the indicator period, which is displayed as the second plot on the same subgraph.

This study can be used with any moving average: simple, exponential, Wilder’s, Hull, weighted.

Moving Average Bandwidth is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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