Not advice Educational reference only — nothing here predicts a price. What the measured outcomes are · Sources
← Bands & channels

Acceleration bands

ABuntested

Bands drawn around a moving average and widened using the day's high-low range, meant to highlight potential breakout zones as volatility expands.

What the numbers mean

20

The lookback sets both the central moving average and the window of high-low ranges used to widen the bands. The band width comes from the average range as a fraction of price, so the envelope expands where the daily swing has been getting larger.

  • 20 — the lookback for both the central average and the range calculation
  • 80 — a longer setting used for position trading
  • Width comes from average range as a fraction of price, so it scales with the security

How it is used

Read as a breakout frame: two consecutive closes outside a band are the conventional signal that a move has enough force behind it to continue, rather than a stretch to be faded.

  • Two consecutive closes outside a band → the conventional breakout signal
  • A single close outside → usually treated as noise
  • Bands widening → the average daily swing is growing

How it relates to everything else

Acceleration bands sit between fixed envelopes and ATR channels: the width comes from range like Keltner, but expressed as a proportion of price like a percentage envelope. Formulas differ between platforms, so readings will not always match.

  • Closest in spirit to Keltner channels, which use ATR directly
  • Two-closes-outside rule makes it stricter than a Bollinger band touch
  • Check the platform's formula before comparing charts

What to watch for

It is a niche indicator with no single agreed formula between platforms, so readings will not always match from one charting package to another.