STARC Bands is a VertexFX VTL indicator that is used in trend trading where a range breakout is considered. STARC bands are three bands forming a channel around a simple moving average. STARC indicator is similar to Bollinger Bands but does not use standard deviations in its calculations. It is calculated by means of Average True Range (ATR) providing more detailed information on market volatility.
STARC bands are used in two modes. First one is as a trend following indicator. For this enter 1.33 for parameter KATR. Now when price breaks out of the bands, there is a high probability that price move will continue in that direction. Open positions in the breakout direction.
To use STARC bands as an oversold overbought indicator, make parameter KATR 3. Now when the price reaches the bands, chances are that it is a short-term price extreme. Countertrend trades can be opened here.
Parameters:
1. MA_Period – Moving Average Period
2. ATR_Period – Average True Range Period
3. KATR – ATR multiplier
4. Shift – Number of bars to shift forward
1. MA_Period – Moving Average Period
2. ATR_Period – Average True Range Period
3. KATR – ATR multiplier
4. Shift – Number of bars to shift forward
To use STARC Bands Indicator download it from HERE, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right-click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.
You can check this video that talks about STARC Bands Indicator: