Projection Bandwidth

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.

How To Access in MotiveWave

Go to the top menu, choose Study>Mel Widner>Projection Bandwidth

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

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Calculation

//period = user defined, default is 14
//prev = previous, index = current bar number
//LOE = less or equal

mLow = linRegLine(period, low)[1]; //returns the slope (m) of Linear Regression line
mHigh = linRegLine(period, high)[1]; 
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);