How can I use the new technical analysis study called STARC?
Stoller Average True Range Channel (STARC) bands tighten in steady markets loosen in volatile markets. Unlike Bollinger bands (based on the closing prices), STARC bands are calculated using the Average True Range (ATR), thus giving a more in-depth snapshot of market volatility When a price curve penetrates a Bollinger Band it may indicate the continuation of a price move; in contrast, the STARC Bands tend to define upper and lower limits for normal price action. Therefore, some traders use STARC bands to determine the level of risk prior to entry.
