STARC Bands
 |
Definition of 'STARC Bands'A type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset's price. The upper band is created by adding a value of the average true range (ATR) - a popular indicator used by technical traders - to the moving average. The lower band is created by subtracting a value of the ATR from the SMA.Upper STARC band = SMA + ATR* Lower STARC band = SMA - ATR* * The average true range (ATR) is generally multiplied by a user-specific multiplier factor before being added/subtracted from the SMA. |
 |
Investopedia explains 'STARC Bands'Most traders use a move toward the upper band to signal an increased probability that the price will pull back toward the moving average, and a move toward the lower band as a signal that the price may head back higher. Other traders believe a move beyond the bands signals an increase in momentum. STARC bands generally use a six-period moving average, and the average true range factor is usually multiplied by two before being added/subtracted from the SMA.This indicator is similar in calculation and interpretation to Bollinger Bands®. STARC is an acronym for Stoller Average Range Channels. The indicator is named after its creator, Manning Stoller. |
Related Definitions
Articles Of Interest
-
Discovering Keltner Channels and the Chaikin Oscillator
It's time to acquaint yourself with some lesser-known yet effective technical indicators. -
Capture Profits Using Bands And Channels
Donchian channels, Keltner channels and STARC bands are not as well known as Bollinger bands, but they offer comparable opportunities. -
A Primer On The MACD
Learn to trade in the direction of short-term momentum. -
When To Short A Stock
Learn how to make money off failing shares. -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Market Summary for September 6, 2013
The major U.S. indices moved lower this week, after a lackluster jobs report sent shares lower on Friday morning. -
Market Summary for August 30, 2013
The major U.S. indices moved lower this week, but remain within long-term price channels. Traders should watch for breakouts or breakdowns from these price channels for the best opportunities. -
Market Summary for August 23, 2013
The major U.S. indices were mixed this week, with many of them lying at critical pivot points and support levels. -
4 Stocks, 4 Topping Patterns
Each of these four stocks has a different topping pattern potentially in play. The similarity is that if they decline much further a lot more selling could be forthcoming.
Free Annual Reports