Developed by Manning Stoller, helps identify high and low risk periods to enter or exit a trade.
Using 2 x ATR, Stoller estimated that 90% of the price activity should stay within the bands.
It's a high risk time to enter and a low risk time to exit, if the share price is near the top band.
It's a low risk time to enter and a high risk time to exit, if the share price is near the bottom band and other indicators are indicating an entry signal.
