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Igor

STARC Bands Definition

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Just like the Bollinger bands, the STARC bands can be used in range trading by selling at the upper band and buying at the lower band in a range-bound market. They are named after Manning Stoller who described them for the first time. STARC bands tend to loosen in volatile market situations and tighten when markets are less volatile. The upper band is formed by adding the average true range value to the simple moving average while the lower band is formed from deducting the value of the average true range from the SMA.

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