Projection Bandwidth by Mel Widner, Stocks and Commodities Mag. 07/1995, uses the Linear Regression slope, previous highs and lows in its calculation. The user may change the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Projection Bandwidth
Projection Bandwidth may be used in conjunction with other indicators. No trading signals are given.
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Go to the top menu, choose Study>Mel Widner>Projection Bandwidth
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//period = user defined, default is 14
//prev = previous, index = current bar number
//LOE = less or equal
mLow = linRegLine(period, low); //returns the slope (m) of Linear Regression line mHigh = linRegLine(period, high); count = 0; pbw = 0, pu = 0, pl = Double.MAX_VALUE; for (i = (index-period + 1); i LOE index; i++) //move back 1 period prevHigh = high[i-1]; prevLow = low[i-1]; vHigh = prevHigh + (mHigh * (count)); vLow = prevLow + (mLow * (count)); if (vHigh moreThan pu) pu = vHigh; if (vLow lessThan pl) pl = vLow; count++; endFor Plot: pbw = 200 * (pu - pl) / (pu + pl);