The Projection Bands were created by Mel Widner (Stocks and Commodities Jul 1995) and this indicator and the other two that rely on this one (I will publish them later) are very underappreciated in my humble opinion. The biggest strength of this indicator is the fact that it is a leading indicator for dramatic price movements. As you can see in my example chart it consistently gives great exit points before a downturn. I have included strong buy and sell signals in addition to normal ones so strong signals are darker in color and normal signals are lighter in color. Buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators or scripts you would like to see me publish!
Interesting Idea. Could you share the principles behind the widening Red Bands during a rise in the stock price ?
cheatcountry
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@bobwel, So widening red bands are meant as extreme likelihood of a reversal point and the same for widening green bands. A widened red band means the price is about to take a downturn and vice versa