Developed by Price Headley, the Acceleration bands are based on the average trading range for each day. The values are plotted equidistant from an n-day simple moving average which serves as the center or middle band. The author indicates that successive days exceeding one of the bands tends to indicate an entry point.
Because the bands use the daily trading range (high-low) they will also expand and contract based on the volatility of the price.
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