Projection_Bands - indicateur pour MetaTrader 5

Calculation:

UpBand = Maximum(High, PrevHigh*SlopeHigh)
DnBand = Minimum(Low, PrevLow*SlopeLow)

where:

• SlopeHigh - regression line slope of High prices in the Period range;
• SlopeLow - regression line slope of Low prices in the Period range.

Interpretation:

• When the price reaches the upper border, it is considered to be at the resistance level. The market is overbought;
• When the price is located on the lower border, the market is oversold.

In order to sort out signals, use a a detrending oscillator to exclude the trend component, since overbought/oversold levels may be constantly updated by new prices during strong trends, which leads to false signals and losses.