Projection Bands

Projection Bands were developed by Mel Widner, Ph.D and were introduced in an Technical Analysis of Stocks & Commodities magazine article in July, 1995.

Indicator Description

Projection Bands are found by locating the highest high and lowest low in the n bar lookback period. The bands plot parallel to a regression line of the high/low and indicate potential areas of support and resistance. If prices reach the upper band, it signals potential overextension that can be used to identify bearish reversal opportunities. Conversely, if prices reach the bottom band it may indicate bullish reversal opportunities. Unlike other channel indicators, such has the Keltner and Bollinger Bands, prices do not break above or below the Projection Bands.

The indicator is available for NinjaTrader 8.