UK Accounting Glossary
A type of technical indicator that is created by plotting two bands around a short-term simple moving average (SMA) of an underlying asset’s price. The upper band is created by adding a value of the average true range (ATR) – a popular indicator used by technical traders – to the moving average. The lower band is created by subtracting a value of the ATR from the SMA.
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This glossary post was last updated: 25th March 2020.