Envelopes and Methods of Price Containment
Figure 12.21 STARC Bands Working in Conjunction with the Cycle‐Tuned Stochastic
Oscillator in Pinpointing Potential Tops and Bottoms on the Daily Chart of Silver.
Source: MetaTrader 4Figure 12.22 Linear Regression Bands on the 4‐Hour Bund Futures Chart.
Source: MetaTrader 4current price action. It cannot be projected into the future for potential barrier
levels. See Figure 12.22.
Figures 12.23 show price reverting back to its central value, that is, the re-
gression line, during a gap down in the exchange rates on the 30‐min chart of
EURUSD. As with any price‐containment band, price is expected to revert to its
mean or central value.