Exponential Deviation Bands by Vitali Apirine
Trading bands (also called price envelopes or channels) can help you read the trend on a chart. Here’s a version that is well-suited for trend following.
In he past, I’ve written about exponential standard deviation bands. Here, I will present a slightly different version, useful for trend following. This version uses exponential deviation instead of the more usual standard deviation in its calculation. In addition, these bands can be based on either a simple moving average or an exponential moving average ...