What is this indicator?
Two bands plotted at a fixed percentage distance above and below a moving average to reveal extreme price zones. Unlike Bollinger Bands, the band spacing is fixed and doesn't react to momentary market volatility.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.