STARC

The STARC indicator is a trend indicator conceived in the early 1980s by the technical analyst Manning Stoller. The STARC bands represent two lines that form the channel around the Simple Moving Averages. The indicator in question is similar to the Bollinger Bands: STARC strips shrink on stable markets and expand on volatile markets. However the STARC bands are not based on CLOSE and do not take into account the standard deviations, unlike Bollinger Bands, but STARC Bands are calculated using the Average True Range (ATR), thus providing a more in-depth overview of volatility of the market. Using the STARC, the optimal parameter is represented by the period 10.
The STARC indicator can be interpreted in two ways:

1- generate BUY or SELL signals when the CLOSE price is released from the bands. In this case we expect an increase in the price above (BUY signal) or a decrease in the price below (SELL signal) of the STARC lines.

2- can be used to highlight areas of overbought or oversold of the price. In this regard, it is necessary to modify the Shift from 1.33 up to 3. In this case the CLOSE price approach to the bands will suggest the achievement of extreme values, and therefore the probability of a price inversion is high.