By definition STARC is short for Stoller Average Range Channels and represents a technical tool that displays three lines which forms a channel around a typical moving average.
The three lines are as follows:
- An n-period Simple Moving Average
- An upper band, which is the n-period SMA plus an m-period Average True Range (ATR) multiplied by a constant K
- A lower band, which is the n-period SMA minus an m-period ATR multiplied by a constant K
The STARC Bands Metatrader 5 forex indicator was developed by Manning Stoller as a means of gauging lower and upper limits for normal price action.
Currency traders often look at this indicator in a bid to get a peep at risk level prior to market entry.
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Example Chart
The GBP/USD H1 chart below displays the STARC Bands Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when price opens and closes above the middle dotted line of the STARC Bands forex indicator.
Sell Signal: Go short when price open and closes below the middle dotted line of the STARC Bands forex indicator.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, price closes below the middle dotted line of the STARC bands MT5 forex indicator.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, price closes above the middle dotted line of the STARC bands MT5 forex indicator.
Tips: Reversal points can be determined when traders deploy the STARC Bands technical indicator, in line with price action around the upper and lower bands.
